1. SINA – earnings today after the bell. Almost triple the average option volume with just under 60K options trading. Most trading was in the Feb22 weekly 50 puts and 57.5 calls, so a little …
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MorningWord 12/24/12: First and foremost, all of us at RiskReversal want to wish you and your families a very Happy Holidays. Enis, CC, Kristen and I will all be traveling to see family over the next week …
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MorningWord 12/21/12: Last night saw a bit more action than most would have expected for the second to last Thursday of 2012. Earnings from the likes of NKE and RIMM have those stocks moving, and …
Continue readingTrade Update Dec 20th, 2012 at 10:04am: With JOY straddling the 62.5 strike, and one day until expiration, the calendar is worth more than a double from what I paid last week prior to its …
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MorningWord 12/20/12: The 3 month chart below of AAPL and RIMM’s price performance shows the stark difference in investor sentiment for the 2 smartphone makers of late. AAPL has re-traced more than half of its …
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MorningWord 12/19/12: Enis and I had a very interesting dinner last night with a former emerging market strategist for a large bank and a global macro hedge fund manager, where we debated the prospects for …
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Going into earnings in JOY, Dan put on a bullish calendar to take advantage of a potential upside move in the stock while protecting against near term options premium that may have been overpricing the …
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Event: JOY reports fiscal Q4 earnings prior to the open tomorrow, the options market is implying about a 5.75% move, vs the 4 qtr avg move of about the same at 6%.
Continue readingTrade Update Nov 9th, 2012: CMI has shown bizarre strength in the past 2 weeks, diverging from market weakness. That unfortunately hurt my profits on this short call spread position, but at least the stock has …
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I traded a short CMI call spread on Oct. 4th as a way to play a selloff into earnings as I expected traders to be cautious given the poor macro backdrop. This is what I …
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