The normal relationship between stock price and implied volatility is an inverse one. VIX generally moves up when SPX index price moves down, and vice versa. For the large majority of individual stocks, this holds …
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I had a good conversation with a reader about NFLX this weekend. The reader mentioned a few interesting reasons for his short bias on NFLX, including: Showing relative weakness even as the broader market pushes …
Continue readingTRADE UPDATES APril 24th 2012 at 9:45am: NFLX currently ~$87.20 Trading around earnings events are obviously very tricky and especially in names like NFLX that have historically moved in the mid to high teens following …
Continue readingNFLX reports their Q1 tonight after the close. -The Options market is implying about a 13% move following earnings vs the 4 qtr avg of about 17.5% and the 8 qtr avg of about 16%. …
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Part VI Calendar Spreads Calendar spreads, also known as time spreads, are extremely versatile strategies and can be used to take advantage of a number of scenarios while minimizing risk. A calendar spread consists of …
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OPEN implied move is about 15% vs 4qtr avg of about 8% Stock is down about 58% from last year’s highs and up about 50% from the November lows. My Take: This is obviously a …
Continue readingTrade Update Feb 3rd, 2012 at 9.42am: WIth GMCR down 1.5% today I closed the Feb 3rd/March 60 call spread at 2.70 for a .70 gain. This was slightly disappointing after getting the direction and …
Continue readingTrade Update Feb 2st, 2012 at 3:30pm: Ok guys well I kind of blew this one….While I was playing for a big move, I wasn’t playing for this big of a move…with the stock up almost 24%, …
Continue readingTrade Update Feb 2st, 2012: GMCR reported better than expected EPS for their fiscal Q1 and their forward guidance wasn’t as dire as some might have expected. The stock is trading up 22% in the …
Continue readingTrade Update Feb 1st, 2012: GMCR reports fQ1 tonight after the bell and if u can believe it the implied move has ticked up a tad to almost 16.5%! The main thing this tells …
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