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Happy 2013 and a look at the markets for the year
Happy new Year to all of our readers !! We entered 2013 on a cliffhanger, but as expected, Washington came to some half-baked deal as time was running out. Markets have gone up, the S&P has gone...
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Trade Idea – Amazon Earnings Trade (AMZN) Straddle
Amazon ($AMZN) reports earnings on January 31, and this is an Amazon Earnings Trade. Although $AMZN just hit all-time highs yesterday, it’s still a wild card – Earnings could be a hit or miss. Under...
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Trade Idea – BIDU Bear Call
Anybody watching BIDU in the last 6 weeks or so deserves to be in the doghouse if they didn’t take a bullish trade (myself included). It bounced strongly off a bottom of 85, and it gave good entry...
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Options Pinning strategies
There was some interest in the concept of Options Pinning strategies on various posts – so I tried an experiment with this concept last Friday, with some spectacular results. Pinning is a concept in...
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A Volatility Index of the Volatility Index – meet the VVIX
Anyone that’s ever traded the VIX Options would have experienced some strange behavior that defies traditional Options models. The VIX skyrockets, but your VIX calls are not making money – this is by...
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Trade Idea – LNKD Non-standard Strangle
Linkedin (LNKD) has made a great move in the last month from 109 to 126. Right now, its trading at 125.8, but it trades in $5 strikes, so to get a straddle or strangle will skew the Delta to one...
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Trading Ideas service – Jan 2013
Performance – Jan 2013 The Trading Ideas service was debuted in Jan 2013 as a test month. And the service was launched on Jan 25th, 2013. The results for January are in using the Thinkorswim...
View ArticleOption Liquidity
Options Liquidity In the Options world, you can measure Options Liquidity using several parameters. The more liquid an Option is, the better your chances of profits because you want to minimize...
View ArticleOptions Settlement – SPX, NDX and RUT
Options Settlement The process of Options settlement can be somewhat confusing for newcomers. The following process applies to Monthly Options. There are Weekly Options that expire at the close of...
View ArticleTrading Ideas – Performance Week 1 Feb 2013
Week 1 – Feb 2013 Trades The first week of the Trading Ideas was exciting and eventful to say the least. The full trade details are available here - http://www.optiontiger.com/performance-history/...
View ArticleThe On Balance Volume Indicator (OBV)
The On Balance Volume Indicator With Volume being such a key (and often under-utilized) parameter in the markets, one indicator stands out for a couple of specific uses – identifying Reversal points...
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Is Distribution setting in on the SPY Charts
The SPY Charts on Feb 25, 2013 Today, mostly for reasons related to the undesirable outcome in Italian elections, the market seemed to have given up all the morning gains. Notwithstanding, the...
View ArticlePut Call Parity
Put Call Parity In the Options world, there is a strict relationship between the prices of Puts and Calls. This relationship is called Put Call parity. Rather than go into the theoretical details...
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GOOG Bear Call gone awfully bad…
Awesome GOOG Bear Call Okay which one is it ?? In the Trading Ideas service, we put this GOOG Bear Call at 820 / 830 two weeks ago when GOOG was at around 785. It moved up steadily, and we did 2...
View ArticleTrading the SPX Index with Leverage
Trading the SPX Index with Leverage Have you ever wanted to trade the SPX Index with built-in leverage ? Let’s look at existing choices and some new ones that have cropped up. There are several...
View ArticleBull Call Spread surgery
Bull Call Spread surgery You may know of a Bull Call spread already, and perhaps have put many a Bull call. But there are certain subtleties which can maximize the profit of your spread, and also...
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Mini Options contracts introduced today
Mini Options Contracts There is an important addition today to Options trading instruments. CBOE is introducing “Mini” Options with a base of 10 shares per contract as opposed to the standard 100...
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What do Share Buybacks tell us
Over the last few years, we’ve heard a lot about share buybacks. In fact, share buybacks are at historically high levels. This pattern has been going on for a few years now, and many US companies,...
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Announcing Options Trading Beginners package
Options trading beginners package I’ve mentioned many a time that the single biggest challenge Options trading beginners face is that of trial and error in the first few months of Options trading....
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Studying Open Interest for stock direction
Open Interest and Market Direction Volume and Open Interest (OI) are widely used to assess the liquidity of an Option. High OI and / or Volume in Options usually means good liquidity, and...
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