3/8/2020 Plan: We are still in the midst of a high volatility regime, with the VIX closing at 41.94 last Friday 3/6/2020 and the march VIX future up to 36.10. There is no harm in sitting out the market this week, waiting for the markets to stabilize. This week’s trade […]
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When people refer to volatile markets, they often mean the market has dropped. The truth is that volatility is direction agnostic. While puts certainly can increase tremendously in value with the increase in implied volatility as markets plummet, we can see an increase in IV in the calls as well. […]
Yes I am using a motivational phrase produced by the British Government to talk about the US stock market. Last week’s market action, which may have Felt like a World War II air raid was not fatal nor as serious. The chart isn’t pretty, though, with the market dropping ~11.5% […]
3/01/2020 Plan: For most traders, the recommendation is to take the week off. The S&P 500 lost 11.49% last week, a very steep 1 week decline that wiped out a lot of profits for long-only investors and led to margin calls for numerous traders that thought the bull market would […]
2/23/2020 Plan: Put spread in Axon Enterprise. If one wants to get long the stock, go with the 75/70 otherwise the 70/65. Warning – this trade includes earnings and is a more volatile play. I am long AAXN and looking to add shares. A less volatile play for the week […]
2/16/2020 Plan: Put spread in Boeing. [Backup plan is 6 March CCL 39/37.5 for 0.22] We sell the 6 MAR BA 317.5/312.5 put spread for 0.50. A more aggressive entry could be the 320/315 for 0.62. Smaller percentage return targeted on this trade, although 10-12% in a few weeks is […]
One of my least favorite airlines to fly is United. I know that All airlines have delays and cancellations, but they made a giant mistake once that kept my wife and two small children from meeting me across the country. In short, they wouldn’t let my family on the first […]
2/09/2020 Plan: User’s choice of airlines – United (UAL) or Delta (DAL). Or both! We sell the 28 FEB UAL 74/72 put spread for 0.25 or sell the 28 FEB DAL 55/53 put spread for 0.31 Intent is to hold until expiration or remove for a few cents on a […]
2/02/2020 Plan: AMC Networks – AMCX – Sell 21 FEB AMCX 35/30 put spread for 0.45 credit We sell the 21 FEB AMCX 35/30 for 0.45. Intent is to take it off if the market quickly recovers for at least 0.25. Good support at the 35 level and if one […]
1/26/2020 Plan: United Airlines – UAL – Sell 7 FEB UAL 77/75 put spread for 0.24 credit We sell the Sell 7 FEB UAL 77/75 . Intent is to go to expiration, will remove early with a big move up on UAL. Would happily take shares at a more than […]