Here is a quick preview of what I will be discussing on Options Action tonight on CNBC at 5pm et: GOOG has under-performed the Nasdaq all year since reporting Q4 earnings in mid-January. International revenues make up more than 50% of GOOG's business, which of course has not been a benefit … [Read more...]
Enis mentioned something about stocks being pinned on Quick Hits a little earlier. We got a few questions asking how exactly this works. I'll give a little primer. Pinning is not some big conspiracy, it is simply a result of the effect that gamma and deltas have as they approach expiration. We'll … [Read more...]
2nd Trade Update May 18th, 2012 at 12:24pm: JPM is down ~11% in a week since buying a June 36/34 Put Spread last Friday for .50 , Yesterday I sold half at 1.00 and now I am selling the balance at 1.25 for a .75 gain. Not to sound like a broken record, but the banks are getting near term oversold, … [Read more...]
3rd Trade Update May 18th, 2012 at 12:11am: With Citi down again I am going to close the last qtr of this position for a 2.46 gain.....With the stock at 26.27 I just sold the last bit of the July 32/27 Put Spread that I bought in late April for $1.00 at 3.46. I Will look to re short on any … [Read more...]
Trade Update May 18th, 2012 at 11:50am: You guys know the drill here......With the XLF down more than 6.5% since buying the July 14/12/10 Put Fly last Friday I just sold half of this position at .41 for a double (stock ref $13.80), Now I can't lose on the trade. I guess my thought here is that … [Read more...]
Trade Update May 18th, 2012: Ok as most of you know I was a little early on the U.S. bank short, but in some ways I feel like I got my own little "Bank bail out" in the BAC May 7/6 1x2 Put Spread that I put on back in February when the stock was $7.80. I paid .03 for … [Read more...]
3rd Trade Update May 18th, 2012 at 10:15am: Since closing half of this position a tad too soon this morning I am going to close the balance at .90 with the stock 25.55. At this point I have to make a decision where the stock is going to close in the next 5.5 hours and frankly I am risking .90 … [Read more...]
Bloomberg U.S. equity-index futures rose before Facebook Inc. starts trading and as Group of Eight leaders prepared to meet to discuss Europe’s debt crisis. Global stocks headed for the worst week in six months and Brent fell to a 2012 low level as China’s economy showed more signs of … [Read more...]
After my one-day nod to the mania surrounding the Facebook IPO with yesterday's chart, I feel compelled to return to more serious matters today. The market is in the throes of one of its most oversold periods in a decade, and that catches my attention much more than the IPO of the modern-day … [Read more...]
CRM reports Q1 earnings tonight, the options market is implying about a 10% move which is rich to the approximate 7.5% 4 qtr avg move. -The street is overwhelmingly positive on the stock with 32 Buys, 3 Holds and 5 Sells, with an avg 12 month price target of ~$172. … [Read more...]
Trade Update May 17th, 2012 at 10:45am: Since buying this May 129/125/121 Put Fly for .56 about a month ago, the FXE is down about 3%. For a currency that is a decent sized move. Now with about a day and half to expiration the Put Fly can be sold at 2.35 or 4x what I paid. I am going to … [Read more...]
Trade Update May 17th, 2012 at 10:22am: Citi is now down 20% since initiating the C July 32/27 Put Spread on Apr 27th for 1.00. I sold 1/2 the position last week at 1.75 for a .75 profit, now I sold 1/2 of what I have left at 3.36 for more than a triple. At this point, while I don't rule … [Read more...]
Trade Update May 17th, 2012 at 10:00 AM: This trade did not go as planned, and when a trade does not go as planned, you take your loss and move on. I thought the gold miners were technically set up for an oversold bounce, with NEM in particular looking ripe for a move above 47, but the gold … [Read more...]
Trade Update May 17th, 2012 at 9:40am: Since Buying this June 36/34 Put Spread in JPM on Friday the stock is down another 8% as the media, regulators, politicians and shareholders continue to press the company on how, why and even the legality of the "self inflicted wounds" the bank incurred and … [Read more...]
MorningWord: 5/17/12: While Europe is grabbing the headlines, Chinese news flow is concerning as well, and the easiest way to see that is the massacre taking place in the industrial commodity complex. David Einhorn mentioned China's endless empty apartment buildings on his slide show yesterday, … [Read more...]
MorningWord: 5/18/12
MorningWord: 5/18/12: One Step Forward, Two Steps Back ain't gonna get it done....for the SPX to close down 1.5% near the lows yesterday and only be up 45 bps on the open today is becoming increasingly troublesome for equities.....we have been saying this for the last few weeks, and yet we … [Read more...]