Today's volume for the Jan2017, 2 & 4 puts are already 5579 and 5000. There is some serious money thinking that the market will continue going up or move sideways for the rest of this year.
I agree that this is probably a risky time to buy puts when UVXY it is at it's low. I may scale in with some put spreads and add to them during market declines.
When I had posted this message, the 1.00 puts were bid/ask 0.10 / 0.12
They are now 0.13 / 0.25
A lot of money has been flowing into these lower strike puts (1-5) this week. Yesterday, 3,000 each of the 2.00 and 4.00 puts traded. Today, 569 each of the 2.00 and 3.00 puts traded. Looks like this was done by the same trader.
Anyone here good with calculating Black Shoals for UVXY options? How much would the lower strike puts (1-5) increase in value should UVXY drop to around 7.00?
I noticed there is a large open interest for the put options for Jan2017. A relatively small downward move could yield a large percentage profit for the lower strike puts.
On March 30, the Brent/WTI spread was 5.33
The spread peaked on Feb 24 at 13.74
When Iran releases it's inventory, the spread should narrow even more.
The best play so far has been short Brent / long WTI
In Yahoo Finance, the day's range is listed as 14.36 - 24.22
What about the trades made based upon the erroneous quotes? Will the flash crash rules be in effect?
GILD has been in a descending triangle pattern. Let's see if the 3/18 low of 98.54 can provide some support. If it breaks through, 95 could be the next support level.
I have been doing swing trading with the weekly options, mostly spreads.
I had suggested the Jan2016, 18/21 call spread to a friend who is not into short term trading. With USO around 17, this spread can be bought for a debit of around 1.00 This would yield a max profit of 200%. With the potential effect of severe contango, it's probably best not to get involved with strike prices which are too high above the current share price.
search for: Gilead Warning of Hep C Patient Death on Heart Med Will Have “Zero Impact”
Also, read the one comment associated with this article.
I found a test report article about amiodarone. One of the conclusions was: "However, amiodarone has serious systemic adverse effects; furthermore, amiodarone has been suggested to be associated with an increase in mortality in patients with severe acute or chronic heart failure."
Class action lawsuit over arsenic levels in wine. The cheaper the wine, the higher the arsenic level. Just a glass or two of these arsenic-contaminated wines a day over time could result in dangerous arsenic toxicity to the consumer.
Now, is there a relationship between the price of flooring and the level of formaldehyde?
Scottrade recently created an options active trading platform which is run by Interactive Brokers. I have not had a chance to check it out yet, but it should be good since IB is used by a lot of professional traders.
It appears that the effect of contango on UCO would be more severe than on USO. A good indicator would be the fact that UCO had a 1:4 reverse split in Jan 2011. Throughout the 9 year life of USO, it has never had a reverse split. Comparing UCO to USO could be the equivalent of comparing UVXY to VXX. Unless you can properly time the UCO share purchases, it may be safer to just do option plays on USO.
Looks like it will be pinned to around 8 today. MM wants most of the options to expire worthless.