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.
Most of the volume appears to be new positions rather than sell-to-close orders. I wonder if this was part of a dividend play since BX goes ex-dividend tomorrow.
It is hard to trade SVXY and UVXY options due to the wide bid/ask spreads. For now, I have been trading VXX options.
However, I am thinking of doing a longer term trade with SVXY by buying some June 40/60 call spreads for a debit of 10.50 or less. I like this spread because I will not be paying for any time premium. Another good thing is that the drawdown will be less compared to just owning shares or ITM open calls. For example, if SVXY were to drop by 10, this spread would still be worth around 7.
There has been no previous open interest for the Jan 2016, 185-200 calls.
Today, there was a new volume of 61 for the Jan 2016, 200 calls. Were these the calls you had sold short? It would be nice to have collected $3500 for each call sold.
Just remember that the IV increases rapidly as UVXY rises. I was selling calls with strikes in the 30s and 40s when UVXY was around 20 last year. I was doing ratio spreads with a single long lower strike call and 3 short calls having different higher strikes.
Have you found it is better to short calls rather than buying puts for VXX? It would seem advantageous to do so since the IV drops when the share price of VXX drops. Option premium erosion would work in your favor shorting calls rather than against you when long the puts.
Have you found a good way to short UVXY? Shorting UVXY would be more effective than shorting VXX, since it appears to be more biased to the downside. With UVXY around 100, the March 100 call is going for around 25. Huge premiums.