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OUT $115 Puts at .80
In SPY Sept 30 PUTS $115 at .64
welcome back Roy
Shawn
this trader has an opinion to say the least
Smartone: I also owned the 53 QQQ puts got called into a meeting when I cam out they were about .21 cents I sold them for .25....can you "please" explain what you looked at to buy and sold them. I'm a father of 2 young chldren who desperately needs to know what I should be looking at. I know nothing is 100% however if I just would have held on.....thanks Shawn
Great call on AAPL Roy !
RIMM getting hammered in AH
Roy: You actually agree we will be up in the next 5 weeks? SPY $127.....
Farooq:
can you please explain this, I'm still learnig here....
"I have sold against them Oct 130 for 60 and 61 Cents. On average my exposure is 30 Cents including comm and if I am right I will have 3 bucks or close to it. "
I understand the original SPY call purchase, however I got a little lost when you mention you "sold agianst them" ...is that sort of like a also buying a Put to counter the trade?
thanks Shawn
Nothing but bads news, yet that market keeps going up....mmmmm
Beer..last week I also traded weeklies, expiring this week...my issue is why are next week Calls and especially Puts 4 x times more for the same 5-7 dollar out strike (not in the money)?
Is it because of the volitality this week? This is nuts why next weeks options are so frickin expensive.
Your welcome Roy. Any ideas for tomorrow?
article on VIX and PUT Options.....
"What you need to know about the Volatility Index,
otherwise referred to as the VIX.
Part 1: Why is the VIX (Volatility Index) an Important tool for Investors?
The VIX explained: Few really know what the Volatility Index is or how it is calculated. Here's are two brief explanations ... the first is a technical explanation, and the second is a description that investors can easily understand.
First, a brief technical explanation ... The Volatility Index (or VIX) is a weighted measure of the implied volatility for real time $SPX put and call options. The puts and calls are weighted according to time remaining and the degree to which they are in or out of the money. From this is created a hypothetical at-the-money option with a 30 day expiration time period. In this way, they are trying to set a value that is equal to the equivalent value of the $SPX's current price. (When a stock's option strike price is "at the money", it is theoretically the same as the price the stock is trading for at that moment.) So what does that mean? It means that the VIX really represents the "implied volatility" for the hypothetical $SPX put/call options on an "at the money" option value.
Second, a brief understandable explanation ...
Simply put, the VIX is a key measure of market expectations in the near term. For almost 20 years, the VIX has been considered as a valuable barometer of investor sentiment and volatility. Another way to look at it, is that it measures perceived risks of investors. The greater the perceived risks investors have about stocks, the more they buy "protection Put options", which means that the VIX will therefore be moving higher. When the VIX moves higher, the market moves lower because they are inversely related.
Many talk about the VIX's implied volatility changes ... but, don't get caught up about the term "implied volatility" if you don't understand it. What is important is that the VIX moves up during times of uncertainty or fear, and down during times of greed or confidence. Since the VIX moves in the opposite direction of the market, you can know what to expect for upcoming market movements by observing what is happening to the VIX. If you think about it, the VIX is a good example of "the self fulfilling prophecy". (The definition from Wikipedia is: "A self-fulfilling prophecy is a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.")
How does it work as a self-fulfilling prophecy? Imagine that an investor has bought a lot of equities over time and now believes that market risks are rising, so he feels that it would be wise for him to buy protective Put options in order to protect his equity. If he believes the market risks are truly rising, he not only buys the Puts, he also stops buying ... otherwise it would be counter-productive. The mere action of enough large investors stopping their buying is often enough for the market to be unable to sustain its up movement. Thus the market pulls back a the self-fulfilling prophecy event occurs.
**NOTE** Since investors have to buy options expiring in the future in order to protect themselves from their perceived beliefs about upcoming changes in the stock market, those actions cause the VIX to move ... and the VIX's movement therefore measures investor expectations of what they believe will happen in the near future. That's it ... this is all you need to know about what the VIX really is.
Since the VIX reflects the actions of investors who buy options as insurance against losses on their current portfolio positions, it would suggests that the VIX's action is predicated on the actions of some very knowledgeable, as well as some very large investors.
So, should you learn more about the VIX and use it ... or not? Here is what you need to ask yourself and decide about: Is the VIX a reliable measure for me to use in determining what will happen to the stock market or not?
If it isn't, then simply disregard it and do NOT use it as an important tool for making investment decisions. HOWEVER, if it is, then you MUST consider using the VIX as a tool when making investment or trading decisions.
I know that you cannot answer this question without also knowing how the VIX tracks with the Stock Market, and how to use the VIX in an effective manner. So, within a week, we will post Part 2 of this Series on the VIX. The title of Part 2 on the VIX will be: "How to Use Technical Analysis on the VIX to know when the market will change direction."
Beer...what your chart saying for today SPY, QQQ, IWM,.. up or down? ...also good to hear that you spent some time with your daughter, Fathers influence is so important to them
Why is that?
Sorry Roy and yet congratulations on finding love in your life
Sold my RIMM $30 strike/put for a loss however compinsated that loss with Buing SPY 119 put at.26 and selling it at .36...RIMM took forever to move. Should be interesting the next 1-2 weeks
Where's Roy been latlely.....
Noticed that alot of the PUTS bounced off their lows 5 minutes before the market closed, could be setting up for a lower opening tomorrow morning, hope so since I just bought some RIMM Puts at 3.58 pm
Great trading BEER !
Sold SPY PUTS 115 @ .38 bought at .23..this was before lunch.
Roy, you have been rather quiet today, hope everything is alright.
Shawn
Beer: Congrats today on some excellent trades. Do you have a particular method you apply? If so, can you explain
Thanks ! Shawn
Smartone: congrats on todays trading. Do you have any method that you apply? If so could you explain.
Thanks Shawn
Smartone have you changed your name from "Roy1927" ? great trading !
Roy; last week you made a great call in predicting a pullback (which did occur), any thoughts for the remaining of this week?
pls and thanks
Beer, whats your opinion for the rest of the week?
Beer, I think you'll be ok today for the CALLS.
The fact that the Chaikin has gone up reflects what?
Thanks
Beer, good luck with your pick, what I do not understand is while I'm watching the SPY go up the CALLS are at their lows (or near it) and the PUTS are in the middle form the lows and highs of the day. Is this the market sentament that the general feel is that were are going down? Why are the CALLS so low when SPY is up-ticking?
Roy: Earlier this week,you made a great call with an over all pull back for this week. Any ideas for next week?
thanks !
Excuse me for showing my investment ignorance but don't options expire on the 3rd Friday of the month in the morning?
Thank you. Yes, the Aug 110 puts. I have only started trading options for 1 month now. My first 2 trades I got lucky, made good $...buying at .05 and selling form .30's to.40's, then I gave it all back the last 2 weeks, still learning. Mostly taking on Roys leads with SPY and RIMM, IWM.....
Phonetic: I kept my SPY 110 puts overnight. I bought them on Tues and was down big time, all the way down to .2 cents. I was content when they were at .12 cents first thing AM, then more content when they reached to where I bought them at .20 then really content when I sold them at .41. Yesterday at 3.55pm I was one mouse click away in buying the SPY 114 puts at .09 I think they hit $1.17 today, it's just that I was really down on my other order and I asked myself if I was prepared in loosing even more money...oh well
Good one Beer !
In todays market, Is this the retrace you mentioned?
Are we done or is there more to come , tomorrow?
thank you !
thanks Roy
Why is it that some of the SPY calls are at their lows even though SPY is up almost $2.00. Is the general public traders think that SPY will be down this week?
Can someone explain....if SPY is up lets approx $2.00 now, why are the Calls at the lowest?
thank you
I think we might see DJ at 9800 at end of week