When the volatility is not high enough

Is volatility too high now? When is the volatility not high enough?  A good question to ask since I am back in Chicago for the Option Pit Traders Summit and it brings back memories of days as a CBOE member in the 90s.  Most of the option education information is centered around selling volatility and…

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How to jack up a high dividend stock

Take a look at our Pro Traders Summit T is a high dividend stock ATT (T) is a giant utility.  T along with INTC and QCOM are pumping out some hefty dividends.  I don’t normally write about dividend paying stocks and strategies but I own a bunch of them.  T pays over 6%, INTC 2.9%…

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Stock Market & Option Volatility Report: SPX range bound for the trade war

4-2-19 Stock Market & Option Volatility Report: https://vimeo.com/327968813 It isn’t too late to join our Master Class! Click here for Details

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I need to handicap the VIX

Is handicapping the VIX a fool’s game you ask?  It depends who does the handicapping.  As of right now the daily move in VIX is up or down $2 depending on the direction of the Tweets or responses of the various parts of the Executive Branch.  Ultimately VIX prices the 30 day volatility so one…

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Buy AAPL now but at lower prices

Buy AAPL!  I can hear the CNBC pundits now for those that loved it at $213, $188 would be an even better deal 10% lower.  I don’t know what is worse, the Trade War where AAPL cannot sell phones or the App Story Monopoly shakedown out of the Supreme Court.  Everyone gets $4 and one…

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INTC is having a very bad week

Our Edge Hunter Intro Video is here! INTC is having an awful week.  The stock market via the Trade Dispute with China is starting to take on the proportions of the Galactic Trade Federation conflict in Star Wars.  Which character Trump or Xi plays depends on which side of the aisle you sit on.  The…

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The Biggest .45% SPX move in history

Large moves in SPX are nothing new.  In fact we see them all the time and 2018 in particular had large moves in SPX but in VIX also, especially VIX. Today our Option Pit Pro Chat Room could almost smell the non-selloff in SPX.  Mark plopped into the feed on Sunday night that this dip…

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TSLA rallies today!

So TSLA finally has an up day today.  That in itself is a surprise since TSLA just had by most accounts the worst earnings report in its history.  Usually this does not mean much as Sir Musk rides to the rescue with a new shiny object to make investors happy.  The SEC is coming up…

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Do you want to sell 9% volatility?

That is the question, Do you want to sell 9% volatility? If you are an SPX trader, the answer is usually no.  LTCM famously sold 11-13% volatility in the SPX in 1998 right before the Russian Debt Crisis went belly up.  SPX volatility shot to the 30% range and LTCM went to history’s dust bin…

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Where does the volatility go?

Where did the volatility go that we had just enjoyed for Oct through February?  As I look at the VIX today with a low close for the year at 12.09 I can’t help but think something is not right.  Trade Deal with China, still not done.  G7 negative interest rate extravaganza is still with us.…

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