hard to borrow

Is the OPK squeeze healthy?

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The FOMC released their statement today and the June raise is looking unlikely.  2016 will probably be the year when interest rates get back to normal but for now all stocks could do was muster a .10% move in the big indexes either way.  We are starting to tilt toward good news is good news again but the sub normal rates and stocks are showing the indecision today with VIX trading 2015 lows.

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Popping a Z

 

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Stocks looked ugly today after the weekend did not solve anything in either Gaza or the Ukraine.  The POTUS threatened unilateral action against the tax inversion meisters and that seemed to get things going on a dumpy note.  By midday all was forgotten.  The dream merger between to social media darlings did not hurt.

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How would YELP review this short squeeze?

The ECB had another chance to dazzle today and all we got was nothing.  There seems to be no end of disappointment to the Euro area problems.  There is no reset button.  Although it does not look as bad as it did in early June if market volatility has anything to say about it.  So the ECB, will again, wait and see how another auction goes for Spain.  The fact that the Euros will have to mutualize all this debt and give up some sovereignty still has not dawned on everyone.  After all the USA did that over 200 years ago and it was an 8 year process.  In the internet age how would YELP rate th

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How does risk change in a short call assignment?

A lot of traders that are new to options have to first deal with the number of moving parts in an option contract (mainly, why we put together the Silver Course) and all the permutations that fall from it.  One of the first things that come to mind is when a call is assigned and becomes stock (this happened to one of our students yesterday).  First, there is a call and now there is stock.  What to do?

Remember is that there are two issues:

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Wasn’t Facebook just hard to borrow?

I spent a few minutes today looking at some other internet blogs about options.   Mark and I get links all the time, and I check them out when something looks good.  I am happy to pass this one along- http://www.optionstradingiq.com/top-10-option-trading-blogs/.  We made this guys top 10!  It is nice when someone notices what you do and takes the time to write about it.  Now that I have plugged myself, time to look at Facebook.

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Is Facebook going Hard to Borrow?

With the swings in volatility this year, I never thought a 1.15 move would count as exciting.  But moving from 13.75 up 1.15 counts as excitement on a day, when the SPX was down .15.  Yes .15!  I think there is some interesting VIX future action going on (premiums are pretty fat), but the lower VIX gets folks a bit scared.  VIX got within .09 of the year lows going into the Italian Bond auction this week.  That is pretty impressive for how much the mood has swung.  I think there is some anticipation coming into the Italian debt offering later this week and will cover a trade for that tomorr

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I would not buy GRPN with a Groupon Coupon

Europe is putting big pressure on the US equity market.  In fact, the close to close activity looks  much more benign, I think, than the intraday selling.  After watching the most overvalued security in the world, the TLT, trade to a new high for the year (and it could go higher as the Greek electorate figures out what happens after they get to replace their shiny Euros with TP), I looked at revisiting GRPN just post-earnings.  A few things were bothersome about the activity today. 

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ZNGA goes Hard To Borrow

As the market winds up for the big Facebook IPO, the other Social Networking stocks are showing signs of a strain.  This blog has covered Groupon (GRPN) and some of the stock borrowing issues facing names with relatively small floats.  ZNGA has a relatively generous float compared to its other Social Media stocks, so the borrow issues were not too bad.  But the markets, like the weather in Chicago, change hour to hour, day to day.  ZNGA has had a nice run, and the shorts are starting to really pile in.  Take a look at the chart of ZNGA now that the name has gone a bit hard to borrow.

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Is There Any Zing in Zynga?

Is there any zing in Zynga?

 As a veteran of the first internet bubble (some scars but whole for the most part), internet bubble round two is mostly Internet Bubble Lite.  Linkedin, Groupon, etc. have made for some fantastic IPO’s for the founders and employees, and they generated some hefty valuations.  It does feel like investors are smarter the second time around.  The same low float IPO’s for sure, but these businesses are much farther along than the internet stocks of 1996.  Take a look at ZNGA for instance.

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