Fear dying down?
Bought SPY 109 July calls (17-July expiration) at 2.90.
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Last leg of the correction? Time to break the 2010 trendline?
Although recent intra-day lows have crossed the 2010 trendline in the graph below I hallucinated in February we haven’t had a SPY closing yet that has crossed that line (104.87 for 9-June-2010). My crystal ball has been notably hazy recently, but I’m still thinking this is a correction and not the beginning of a bear market. I continue to be bearish on the prospects …
Will things start looking up for BP?
I’m optimistic that this generation of containment device will work–once they manage to trim the pipe. Bought BP July (17-July expiration) calls at 40 for 2.84. BP is currently trading at 38.34.
Recovering from a correction–six years ago
On June 1st 2004 SPY was well on its way recovering from a 5% correction that started in May. The jury is still out on whether this year’s 12% correction (based on closing values) is over, or just the beginning of a bear market. Six years ago we didn’t have the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) in financial turmoil, or a big …
VXX Options—Similarities and Differences with VIX Options
VXX options offer ways to take either long or short volatility positions. Unlike most securities VXX tends to go up when the market is down—which leads to some signficantly different options characteristics. Comparing VXX options to VIX options: Similarities: Both are ultimately based on the Cboe’s VIX futures Will show a strong reversion to baseline behavior when the market is behaving itself—the VIX index and …
