intc

Sell the Index & Buy the Stocks

Submitted by msebastian on Thu, 01/24/2013 - 5:07pm

Goldman put out a comment prior to earnings season, which was something that I happened to agree with.  It basically pointed toward the fact that, while the VIX was overpriced relative to market movement, it didn't mean the component parts IV's were necessarily overpriced.  Their main point was that it might not make sense to  sell premium in individual names; in fact, they might be a buy.  At the same time, SPX IV is probably still a sale.  Something that might confirm the low SPX expectations are the overall flat VIX curve and the low JCJ (CBOE Correlation Index).  Let's quickly break down the trade

The Funky Fly lands on INTC

Submitted by atg on Wed, 04/18/2012 - 5:04pm

Post-earning trade is one of my favorite times for a stock.  The news is really is inconsequential except when put against the underlying movement.  I do think stocks tend to trend a bit after earnings (no science behind that, just observation) but what happens when the report lands with a thud?  The name is kind of directionless and I think that too is a trade.  There are ways to make money on stocks that go nowhere using options.

INTC and an Example of Option Order Flow being Wrong on Direction, but Right on IV

Submitted by msebastian on Thu, 01/13/2011 - 7:10pm

For all of you option trader's that followed my suggestion that the INTC straddle was underpriced congratulatio

Breaking Down INTC Options Ahead of Earnings

Submitted by msebastian on Tue, 01/11/2011 - 10:26pm

One of the things my options mentoring students often ask me is: 'How should I evaluate earnings?"   My first answer is "I follow the option paper flow."  My second answer is I look at th

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