The rally in the S&P 500 (SPX) from last month’s lows near 1800 to today at 2000 was initially powered by some of the most loved and most prominently weighted in the index. But of …
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We’ve been pretty thematic in our trading the past few months on RiskReversal. Hedge your portfolio (e.g. IWM, SPY, QQQ), avoid anything with strong dollar and international exposure and hide out in treasuries (e.g. TLT), …
Continue readingWe had a hunch 2016 could get off to a rocky start. With the way stocks creeped higher into year end 2015, shaking off headwinds left and right, we thought it wise to detail some …
Continue readingHeading into the Christmas Holiday week we detailed some portfolio hedge ideas we thought made sense given the uncertainty surrounding the start of 2016 and sell offs we have seen in each of the last …
Continue readingFor 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 …
Continue readingIn 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, …
Continue readingIn mid October we entered a bearish trade in IWM, the Russell 2000 etf. Our main reason for targeting IWM was its relative weakness and the technical set-up which looked atrocious. Here was the trade …
Continue readingThe largest trade (so far) in the options market today is (what appears to be) a fairly massive bearish put spread bought in the iShares Russell 2000 etf, the IWM: When the etf was $119.10, …
Continue readingI guess people think it’s safe to go back in the pool. The S&P 500 (SPX) is now up 2% on the year, and just 1% from the previous all time highs. Regular readers know that …
Continue readingOn Friday’s Options Action on CNBC I detailed a bullish trade idea in Macy’s (M) and described a position hedge for long holders of Facebook (FB) into next week’s Q3 earnings. Cornerstone Research’s Carter worth gave his technical …
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