A little over 2 weeks ago we placed a bearish trade in General Motors (GM), fading its recent strength and targeting a 50% retracement of the move back from the rally that started in October. …
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For months now it has been our view that the Russell 2000’s weak relative performance has made the etf on the small cap index, the IWM, one of the best equity portfolio hedging vehicles, at …
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In mid October we entered a bearish trade in IWM, the Russell 2000 etf. Here was the original trade and rationale. We recently closed that trade for a small profit and rolled to tighter strikes, …
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Last night I went to see the new Star Wars movie, the Force Awakens with my wife and two daughters ages 10 and 12. We were blown away. My wife and I, who saw the …
Continue readingRegular readers know that despite frequently commenting on unusual options activity, we generally don’t place a strong emphasis as it relates to our own trading as it nearly impossible to glean the reason for the activity …
Continue readingHeading into Wednesday’s FOMC rate hike we adjusted our long positioning in the utility sector etf XLU. We rolled a long Jan 43 call into a long Feb 42 call to pick up deltas after …
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The homebuilder Lennar Corp (LEN) is scheduled to report fiscal Q4 results tomorrow morning before the open. The options market is implying about a 4.3% one day move, which is rich to the 4 qtr …
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The Fed is doing their best to orchestrate a soft landing for their rate lift-off. Yeah, that makes no sense. But I made it up myself and it makes me laugh. The FOMC are quick learners …
Continue readingOn November 30th we ran through the bullish case for shares of General Electric (GE) into the new year and detailed an options trade to play for a long term breakout, and catch up trade to …
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Last week I previewed Oracle’s (ORCL) fiscal Q2 earnings report due out after the close (here). With just a few hours to the print, the options market is implying about a 5% move between now …
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