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VIX Wrapup, Variance Index, Very Uncertain Markets
Our VIX post from yesterday got picked up by two of the deans of options blogging, Adam Warner (shown) and Bill Luby: The Big Question for the VIX VIX Jumping the Shark? VIX and VIX (and thanks also to...
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Ditch the Story
Times like this are tough for traders who insist that their positions have some kind of story supporting them. Technology is strong and probably always will be, but it’s not going back to dotcom...
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There, That’s Better
This morning (premarket) we sent a note to subscribers laying out some hedging strategies, should they be needed in the event of a continued rally. Happily, not only was that note totally unnecessary,...
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Our Broken Economy
Forgive us a short rant this evening. This country is sick. When the three main engines of growth – consumer spending, real estate, and financial services – are broken, it’s just not possible to make...
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Inescapable Oil
For mental health reasons, we hardly ever watch CNBC anymore. But glancing at it this afternoon, at one point we saw three separate live graphics displaying the price of crude oil. So much screen space...
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Exiting XLE Iron Condor After Some Good Defense
We published the following bonus trade for our members back on May 2: Buy to open XLE June 70 put Sell to open XLE June 72 put Sell to open XLE June 90 call Buy to open XLE June 92 call for a net...
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Dow Slips Below 12k on Whatever Random News
We got a round of the correlation game started this afternoon, but it went nowhere fast: either headline writers are getting smarter, or today’s action is just too tenuous even for them! We realize...
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Selling Premium on the Uncertainty in Oil
The inverse relationship between oil prices and equity markets still seems intact: as crude has sold off over the past week, markets have lifted, and some analysts have even tried charting an...
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Beta and Risk in Troubled Markets, Part 2
In this mini-series, we’re examining the value of beta as a measurement of risk. In this post, we want to examine how the betas of some popular stocks, indexes, and ETFs changed during 2008 and...
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Should Market-Neutral Options Traders Diversify?
We generally restrict iron condor trades in our paid newsletter and managed accounts to index products. For those who prefer ETFs, we look at SPY, DIA, IWM, QQQQ; otherwise, SPX, RUT, NDX, DJX are...
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