Andrew Giovinazzi's blog

Is the TLT turning heads?

For every action there is an equal and opposite reaction, or something close to that, as Newton once said.  The action is that no one really wants to buy Spanish Bonds for 350 basis points above Treasuries.  Banks (without the ECB), hedge funds or MF Global (they all ready did that) are not ready to take the leap on more overleveraged countries again.  The reaction is that they are buying Treasuries. 

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The VIX bought the rally today

 

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First Solar Bucks the Trend

It is our 2 year anniversary at Option Pit!!!  We encourage you to try our services out in the coming weeks, we will be offering the best deals on our products that we will all year, call us (888) Trade-01 to find out more details or email us mark@optionpit.com.  If you are just looking to try us out, you can get a one week trial for only .01!  Go to http://www.optionpit.com/bull

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The Camel Sticks its Nose under the Tent

I was hoping to have put the Euro Crisis to bed for the 2nd quarter of 2012, but the chance lasted for all of two weeks.  I guess I can remember the Asian and Emerging Markets crisis in 1997-1998 that caused some hefty drops in GNP for those countries for a year or two.  And what was the result of the discipline and reform that those economies had to endure?  10 years of economic growth only dented by the liquidity crisis generated by the United States in 2008-2009.  The reality is the Euros are going to have to pay the pipe,r and the sooner the better as they start to restructur

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Who Stepped on the Gold Bugs?

 

We had a brisk sell off today on the rain ain’t so great in Spain news.  ADP payrolls were just so so but still growing, and the Fed is iffy on QE Next.  So this was perfect opportunity to take profits?  Seems like everyone sold the popular stuff, but there was one spot where the market hit the ugly button.  The gold miners got laced today with many hitting 52 week lows. 

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How to win with a long time spread.

Well there was another humdinger of a market today.  The numbers on the card said VIX up .01 and SPX down 2.26.  You would think there was nothing going on.  But, as I mentioned in yesterdays blog, the VXX was lively with a $1.34 intraday move.  Intraday the VIX was zipping around as well.  If we are talking about time spreads, you would only want to position one well away from the strike in a situation like this in the vol.

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VXX- the New Trade King

For a moment in time this week, the VXX was headed into the basement of volatility history.  It actually traded around $15.47, if you caught it down there.  While the widely followed volatility name was plumbeting to the basement, the put buyers came out in droves .  We will never know what caused the rally in the put volatility a couple of days ago, but it had all the signs of paper (of ETN short gamma adjusters) piling into the bottom.   Take a look at the IV charts from LiveVol below.

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A Sneaky Way to Buy Options

I am going to take a rest from the volatility products today (did you see the rally and vol crush on the close?) and go back to some vanilla equities.  For the most part, the easier trades in those names are done, as they give a little bounce today.  The implied volatilities after the earnings cycle really get smashed.  The volatility in those names just gets hammered.  While there is no real surprise, in that I have found that the post earnings play seems to do better than the pre earnings play, because so much information is already known.   So let’s take a look at a name like Walgreens (

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A Sneaky Way to Buy Options

I am going to take a rest from the volatility products today (did you see the rally and vol crush ont he close?) and go back to some vanilla equities.  For the most part the easier trades in those names are done as they give a little bounce today.  Not so really for the implied volatilities after the earnings cycle.  The volatility in those names just gets hammered.  While there is no real surprise in that I have found that the post earnings play seems to do better than the pre earnings play because so much information is already known.   So let’s take a look at a name like Walgreens (WAG).

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