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Thank you, Lee. I always appreciate your comments and advice.
Hello Lee! An interesting options situation appeared for one of my trades after OpEx. This IWM trade was previously exposed on another board, and the short arms of the time spreads used are presented on the chart bellow. It appears that I did OK since on Friday, at 16:15, when the options market closed, IWM last was 79.51. Thus, all Mar options sold (to open) expired either worthless or were very cheap (Mar 31, which I bought to close).
How I managed the Apr long arms during the last 2 wks is immaterial and I won’t bother anyone with it. The fact is that now I own a “Tight Strangle”: long IWM Apr 79 P (close=2.23) & long IWM Apr 80 C (close=1.85)...although the expiration value of IWM was exactly at half distance between the 2 legs of my left-over strangle….Hmm!!!!
Let’s see a little bit more:
Apr 80 C theor. val. = 2.06 (impl vol = 26.46)… while Apr 79 P theor. val. = 2.029 (impl vol = 26.43)
Does this discrepancy between theory and market reality tell us something about the “sentiment” of options traders???
Are they smart money?…LOL!
Alternatively, is this the a game between the buyers and sellers of options in which a faction dominates the picture?
Someone suggested to me that some “wise guys” fixed the prices in function of their strong views on the VIX moves on Monday…
Obviously, my interest in this matter is more than purely theoretical…
“babau”: LOL! 1).That idiocy is bizarre, but not funny. It appears that you believe in it and this is your right. But arrogantly preaching illiterate views is different.
2). I am usually polite and I welcome new participants on this board…that is why I posted a chart for you. But you are not interested in making real money. If you were, you might have discovered the ABC of technical analysis. Charts are not easy to read, to produce or to understand. There is no guarantee that they work. They try to capture in graphic terms some reality of the past that might rhyme with the future. But discarding the field as “all rigged-"rappakalja" only” is ungracious and gratuitous. I put you on “IGNORE”
What happens to the Tech stocks? Firstly, indigenous margin calls take their bite. But more than that: American high performers are essential components of the very large Japanese mutual funds and Japan's Portfolio Managers are Selling!!!
Apparently, essential components of such funds are: IBM, AAPL, GOOG, QCOM, BRCM, AKAM, AMZN, BA, NVDA, OVTI, SNDK, SMH. Obviously, they are not very imaginative, those managers!
On the other hand, our local market elves, are doing their best to push the techs down. For example, an ingenuous piece of trash was just committed this morning on The Street.com: “Tech is a Wreck” by Jim Cramer.
However, the Japanese managers might let our Boyz lift the market and tech stocks during the next two trading days, into the OpEx, so that they can sell more techs for better prices next week. For those who still have them and love them, now is probably a good time to put some collars on those dogs, i.e. to sell covered calls and buy puts for the Apr OpEx.
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All this…IMHO.
Nice, Orvis!
Buyng the dip was probably OK for some selected stocks:JKS, VRTX and PPO. A next candidate which I follow: EGO ( not ready yet, but probably soon if gold confirms an UP trend).
Again, PPO (immediately after hours):
“4:02PM Polypore announces additional expansion of lithium-ion battery separator capacity for Electric Drive Vehicles (PPO) : Co announces that it has approved additional capital expenditures of approximately $65 mln to expand its lithium-ion battery separator capacity for Electric Drive Vehicles (EDVs). This capacity, which is scheduled to begin ramping up in late 2012, is being added to the co's facility currently under construction in Concord, North Carolina. When this capacity expansion reaches full production levels in 2013, the co will have increased lithium-ion battery separator capacity by more than 200% from 2H10.”
For chart, click above,
Today was supposed to be AAPL’s big day, due to sales of the new IPads. It was alright, but not spectacular. I was counting on a serious UP.
On this chart, it bounced nicely at 3 support levels...but not much of a bounce!
On the other hand, Money Flow is promising. So, one might think that it could not go higher because of the general bearish atmosphere…Still a BUY!?
JKS at support and ready for a rally… But can it last?
Exactly...The orders on close will tell us whether many pople want to stay long or not.
TODAY: VLO, TSO, & MDR up after a bogus low at open!
Great pick 3X!!! Congrats!
I hope you bought lots of them!
Unusual options activity: PCX, TIVO, JDSU, ACN.
I like PCX, for its chart with 2 independent BUY signals, on 2 time frames. First target: 50% extension = 26.47
Read more:
http://seekingalpha.com/article/257064-tuesday-options-brief-tivo-pcx-jdsu-acn?source=yahoo
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I dropped NVDA from my watch list…until they show some signs of intelligent life.
They want to buy AMD…Give me a break!
No, stickimg with AAPL which is also actimng strange.
PCX is ready for a breakout on a HUGE calls volume (?!)
475 for this Fri exp. (3.10 / 3.40) for a very short swing: intraday to 1 day max.
Yes, I do. Coming soon.
You are probably right! Futures are UP! We shall see.
It's all function of SPX and QQQQ. They run the show!
PPO entered the gap of 2/24. Very hard to play right now, unless we see an "impulsive reversal".
Otherwise…let it slide…
Yep! Also, NVDA close to 20 now
363.06 to close it completely.
AAPL is now trying to fill the GAP of 2/17. It is above the Acceleration band on 130 min, which is bullish and crossed the midline of the regression channel (+/- 1SD).
The daily chart looks great with one exception: surprisingly, the Money Flow (L=17) is not spectacular (?!). Could it be that it goes UP mainly via “gyrations” and not by solid buying?
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I am hedged AAPL holding calendar call spreads, with a bullish bias.