Event: Lenar (LEN) reports their fiscal Q1 results tomorrow before the open, the options market is implying about a 6% one day move which is rich to the 4 qtr average move of 4%.
Continue readingXHB
Here is a quick recap of all of the trades that we initiated, closed, managed, expired and considered (Name That Trades) in the week that was March 2nd to March 6th:
Continue reading
Regular readers know I try to steer clear of forming deep rooted macro views on the market. But for some reason at the end of last year into the start of 2015 (like others) I …
Continue reading
The first rule for investing during our five year long economic recovery from the financial crisis has been “Don’t Fight the Fed”. As crisis policy turned into monetary policy, there has been much debate about the effectiveness …
Continue reading
About a month ago we placed a mildly bearish trade in XHB with the thought that it could decline below its moving averages and settle near the 31 level. With the front month short option …
Continue reading
We put on a put calendar position in XHB nearly a month ago, anticipating some slight downside. Here was our overall rationale for the trade (full post below): So fundamentally a bad outlook for the …
Continue reading
Housing stocks, both builders and related retailers (represented by the XHB, down 2.65% in ’14), have been some of the worst performing stocks year to date. As you can see in the graph below (courtesy …
Continue reading
It was the largest down day for the S&P 500 index since May 20th, though down 0.35% on the day. VIX spot still closed below 12, though there was a large put trade in the …
Continue reading
It seems that for every day that the SPX makes a new all time high, a new potentially significant divergence emerges. Gains in the Housing market, long thought to be a pillar of the recovery, …
Continue reading
With the market touching new highs and shrugging off all the threats that sent it down in January, it’s time to check in on some of the short delta positions we’ve placed and see whether …
Continue reading