Note: TMUS stock moved lower while I was writing this due to a large options trade that forced market makes to sell deltas in the stock to hedge. We’ll detail this trade later but it …
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Event: T-Mobile (TMUS) will report Q4 results tomorrow before the open. The options market is implying about a 5.5% one day move, which is rich to the 4 qtr average one day move of about …
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We’ve been for months on RiskReversal that while there’s a lot to avoid in this market, there are a few investment thesis that have a high probability of success in volatile times. Some of these theses can be considered …
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Back on January 15th we laid out a bullish case for being long U.S. Treasuries and detailed our bullish trade in the TLT, the iShares 20 year Treasury Bond etf to reflect this view (read: Trade …
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On November 13th we detailed a bullish leaning trade in Paypal (PYPL). We wanted to establish a position where we had leverage in the event of a breakout, but offered a reasonable buffer to the …
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Regular readers of Risk Reversal know that we are tried and true believers in technical analysis, despite rarely starting an idea with a chart, more commonly using charts as an input to an existing thesis. …
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The largest single stock options trade so far today was a bearish roll in Freeport McMoran (FCX), a stock that we recently placed a contrarian bullish options trade in (read here). First I want to …
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If the 3% decline in the US Dollar vs the Euro yesterday demonstrated anything to investors, it’s that when consensus, crowded trades unwind, they do so in a violent fashion. There have been few consensus trades in 2015 …
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Prior to Apple’s (AAPL) fiscal Q4 earnings released last Tuesday, we detailed several options trades (here) for those considering to add overlays to an existing position, or to express a directional view. With the stock 4% higher since earnings, we …
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Here is a quick recap of trades that we initiated, closed, or debated in the week that was Sept 8th – Sept 11th: Monday Sept 7th: Market closed for Labor Day Holiday [hr] Tuesday Sept 8th: …
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