When I first saw a chart similar to the one below in Business Insider I was immediately suspicious. For example I knew that May through September of 2009 was a period of rapid growth (21%) yet that surge did not seem to show up on the bottom curve (green)—which shows the performance of staying in the market only May through September. It turns out …
In August CBOE started trading their S&P 500® Range Options (ticker SRO). These options replicate a condor position on the SPX with a single transaction. According the CBOE these are call only condors, not iron condors. You can see the options chain for these if you go to the CBOE quote page and enter in SRO in the left side dialog box. Neither Schwab, …
The market stumble the end of last week dropped the Russell 2000 enough for Frank Roellinger’s Modified Davis Method to signal a 50% sell. That portion of the portfolio gained 17.6% since being opened 30-November-2012. This exit was foreshadowed in the Modified David Method-March 2014 Update. The other half of the portfolio, initiated in July 2009, is still long with a 57% open gain—market breadth has …
Update: On June 18, 2015 the CBOE announced that they would be discontinuing VXST futures and options. These products have not achieved significant volumes so this wasn’t a surprising outcome. As an alternative solution to the desire for options better tracking the VIX the CBOE has added weekly expirations of futures and options to the already hugely popular 30 day VIX futures. This approach has …
It’s been about 7 months since my article on The Modified Davis Method first appeared, so it’s time for an update. Here is the original chart updated through 3/28/14. As before, the top (white) line is the method’s results; the yellow line is the Value Line/Russell 2000 series; the green line is the S&P 500 for reference. The method is still 100% long after the last …
