MorningWord 11/26/13: Here is a news flash to regular readers of this space – I have not been a raging bull in this raging bull market. But readers of the site know that our real …
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Tomorrow morning before the opening HD reports their Q3 results. The options market is implying about a 2.8% one day move vs the 4 qtr avg of about 3.25% and the 8 qtr avg of about …
Continue readingLULU is actually down about 10% in 2013, quite a change in behavior compared to the stock’s soaring gains from 2010 to 2012. The stock was initiated as a New Overweight at JPM on Wednesday …
Continue readingA month ago we put on a trade in HD that looked to take advantage of the technical set-up to sell near term gamma to finance owning long vol in the next earnings month, December. …
Continue readingJPM has underperformed the broader market since earnings, but the broader market’s strength has made our pullback bet unsuccessful, as the stock is only down a bit since we initiated our put spread after earnings. …
Continue readingCitigroup did indeed bounce this week after an initial drop on earnings, but it actually bounced quite a bit through our $50 call calendar strike. As a result, our gains on Oct decay didn’t realize, …
Continue readingThe first batch of earnings reports are in, and the picture is mixed. First, the main takeaways from the banks, JPM, WFC, and C: Mortgage production sees serious dropoff: A major drop year-over-year (in some …
Continue readingSPY and VIX options were the most active, but here were a few other standouts. JPM – The Oct / Nov 52.5 put calendar traded around 20k times at 0.80. The Nov / Dec 52.5 call …
Continue readingWe detailed our thoughts in today’s earnings cheat sheet in Citigroup. The key takeaway from that post was as follows:
Continue readingHD as been a monster ytd, a posterchild for all the FOMC’s hardwork over the last few years. But since the May/June “TaperTantrum” HD has not kept pace with the SPX, and failed to come …
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