On 1-15-14, BAC hit a high of 17.42, up 0.63
Today's high so far is 17.31, up 0.59
WIll have to see if it is a double top or break through to a new high.
A lot of volatility and fear in the market together with new highs is good for the gov. They do not want investors who buy and hold forever. The gov is getting a piece of all the taxable transactions.
The value of all the stocks in the S&P500 at today's close is approximately 16.6 trillion. Anyone know what all the stocks on all of the exchanges are worth? Imagine what the gov could collect in tax revenue if the market were to double in the next 6 years as some have predicted. It is conceivable that the gov could pay at least a substantial portion of the national debt if they can keep the rally going.
I had made a couple of different buys during the week of Feb. 17 for an average debit of 0.65
Not sure what the VXX price was when the spreads were done.
Since this was done as a hedge, it is only around 2% of my account. I am usually trading around 10 different stocks so as to provide diversification.
Don't forget Carl Icahn. He knows that he can move the market. If he could make a big profit from a trade in JCP, he would do it just to get back at Bill Ackman.
I am still holding the VXX March22, 50/ 60 call spreads for a debit of 0.65
If VXX hits 50 next week, I should be able to close out the spread for 3.50
The selloff had occurred at 2:46PM
The Bloomberg news article which came out today has a dated time of 1:56PM, "Sears, Secret Service Said to Investigate Possible Data Breach"
Is it possible that this news article was what had caused a large holder/holders to sell.
I would presume that professionals in the trade would have access to the news from the services in advance of when the news is released to the general public.
Option time premium ATM for March options is now around 10%.
With SHLD at 39.50, the March 43/37 put spread can be done for a debit of 3.30
The buyer of this spread would be paying nothing for time premium.
What about the IV crush after earnings? Even if the share price were to drop to 35 after earnings, the price of these puts would probably stay around the same price as they were when the share price was 38 before earnings.
It is supposed to have a 5.2 inch display. I find the Note 3 a bit too large. This new size will be perfect for me.
The iPhone 6 is rumored to have a 4.7 inch display. Without any info about the new Apple iPhone, how is AAPL going to hold up on Monday after the release of the new Samsung S5?
I am playing the long side of VXX a bit more conservatively so I bought some March 50/60 call spreads today for a debit of 0.65.
Warren Buffett drinks on average 5 12oz cans of cherry Coke every day. That adds up to around one gallon every two days.
Live webcast from Trader's Expo in NYC on Monday, Feb. 17, 10:30 am-11:15 am EST
Lawrence McMillan will be talking about trading VIX derivative options in this webcast.
He is recognized as the expert on options. Not sure if he will be offering any new insights about VIX derivatives which you may already know, but at least this will be a free webcast.
At Friday's close, ^VIX was down 11.26% while ^VXST was down 22.28%.
From a SA article "it is worth noting that the VIX has been higher than VXST about 61% of the time. Typically, when volatility spikes, VXST spikes much higher than the VIX, with the bulk of the 39% of the instances in which VXST is higher than VIX occurring mostly during periods of elevated volatility."
Would the trade be to short ^VXST / long ^VIX to gain that 11% edge?
Yesterday's AH high was 75.68
Today's high so far is 75.45
We need someone brave enough to buy at 75.69 to get the next upward leg moving.
Shorting shares would be a high risk play. Have you thought of maybe doing bear put spreads instead. If you pick the right strikes, you could do a ATM bear spread without paying for any time premium. The best part is that you would not have to worry about getting a margin call. With the huge short % of float, there is always the possibility of a short squeeze.
Does anyone here have multiple regular accounts with the same broker?
This would appear to be advantageous if you wanted to maintain a permanent short position in shares of UVXY or VXX in the first account. The second account would be used for trading shares of UVXY or VXX only from the long side for hedging or taking profits from your short position in the first account. This would also make it easier to transfer funds between the two accounts in case there is a margin call.