puts

GE trades $20, now what?

With all noise on taxes the slide in GE is quietly going under the rug.  Just last week I wrote here it would be more sensible to price GE at $20 on a reduced dividend.  GE is cratering on a downgrade now of all things before the big dividend cut.  Downgrade it at $35, but at $20?  Many don’t think the yield can hold at the near 5% level.  If it does get cut, we should see lower prices.

 

Blog Image: 

VIX future premium is too skinny

      

Any down day in a week for the SPX that does not see many is significant for VIX.  Not that VIX moves a ton yet but for what it sets up going forward.  For VIX traders VIX should go up when SPX drops but this is really not a big move on a percentage basis for SPX.  After all, the move was less than .50% for SPX but a full 1 point pop in VIX.  Even in low vol the VIX cash moved seem a bit rosey.

 

Blog Image: 

VIX futures the quicker picker upper

For a moment there I thought hell froze over as a bi-partisan plan for the AHCA might keep it running for two more years.  Keep buying the insurance companies I guess.  Today was such a snooze that I have to go observational.  NFLX was not enough to excite although 70% stock price gains this year are exciting enough.  Let’s talk VIX because it did something slightly not normal but normal today.

charts from VIXcentral.com

Blog Image: 

The market greets WMT

Not much to write about today.  The biggest news is that the NFL might review its “take a knee” policy and that as you know would overshadow any economic news.  I did find headlines about the Chinese government taking an “active” role in the big Chinese internet companies and I am thinking long term that cannot be good.  BABA and BIDU were both done a bit after torrid runs.  My story for today is WMT because it broke the 3 day rule I just wrote about and what the heck I own it too.

Blog Image: 

The vol is dead, long live the Fed

Come register for our Daily Option Class here

The market for volatility, the VIX, got a one, two punch for the BOJ and the Fed. They basically said they will do things in the future. BOJ to target rates, possibly less QE and the Fed for a likely Dec and 2017 rate rise.  They bought time and they bought space to take out some of the lingering doubts about rates in the mid-term and certainly before the election.

Blog Image: 

Turning to Dust

If you want to understand Weekly Trading click here

Stocks are staring at the 2200 SPX level and blinking.  Since there is no real impetus to drive things higher buyers are content to sit where they are and wait.  For some reason the Yellen at Jackson Hole speech is starting to take on meaning.  With a market lacking meaning anything is a reason to move us.  Gold and gold related names like the miners are getting hit hardest.

Blog Image: 

MYL gets stung

If you want to understand Weekly Trading click here

2015 gave us VRX and the corporate perp walk of the year as the CEO got grilled for jacking up the acquired drug prices.  Congress gave VRX the smear job and the stock lost 90% at the low earlier this year.  My blog of last week talked about VRX and yes it is time to buy juice in there again.  That is not my subject. Congress might have a new dog to beat and the name is MYL.

Blog Image: 

VIX gets a smack

See our Weekly Webinar here

So the Fed turns a bit hawkish and wants to raise rates.  There seems to be the opinion that this fall at some point rates will nudge up.  That has done nothing to dampen bonds and prices jumped again.  Since we are the only G7 country paying interest I guess higher rates make  US Gov bonds more attractive?  That also says something about volatility.

Blog Image: 

Massive Contango Looms in VIX

It sounds scary but it is not.

The Santa Rally is in effect for now.  SPY managed to eke out gains for the year helped not one wit by AAPL.  The late in the year commodity rally is not hurting either.  OPEC says oil will be back to $75 in 2019 or whatever and that was enough to lift crude a buck or two.  The story is still volatility as most of the headline volatility products are still showing signs of life.  That means the VIX futures have yet to collapse.

Blog Image: 

Pages

Subscribe to puts