Options Trading

...emerging markets to ramp up their standard of living. These days we are witnessing an increasing consumption ranging from to high-quality food staples to luxurious items...

...how low the Yuan needs to upvalue in order to affect the U.S. Chinese trade deficit? And how long will it take to get the correct currency ratio? What will happen during this time? The authoritarian leadership stops the process in evidence of slowing economy and or a rise in unemployment?  Will it happen at all?...

...Option's strategy would be a longer trade than usual since BIDU stock is very volatile. Simple cross spreads trade with expiration...

Today Economics: jobless claims, prior 402K, sighting a below readings.

Trade of the day Short Ratio Put Spread spread on AMGN
Buy the Dec 60 Put  and sell twice the 55 Dec put.
In order to profit from this trade, we need the stock to declinea bit, see [VIDEO see below].

VIX Dec future trades the same as the VIX index 28.83.
Trades are looking at the 200 and 50 days moving average on the S&P consolidating to a narrow range with a shrinking volume.
Big trades on the 24 25 put's on Dec and Jan indication that the volatility may stay above these numbers and markets will continue to be volatile.
Furthermore, noted that big trades where on the Dec 30 35 out of the money bull spread on the VIX also a possibility of institutions trying to protect their long position in the stock market.
To those who do not understand the VIX mechanism on uncertain and or declining markets the VIX will rise. probably more significantly than any other instrument.

Some central banks in Europe started weighing contingency plans to prepare for possibility that countries leave the EZ by considering their currencies first time since the euros went into circulation in January 2002. Brussels summit may bring some hope for a solution to the two-year financial crisis and current doubts over countries' abilities to pay their debts.
Eurobonds: Germany 10 bond yields increasing, it shows using basic arithmetic that these bonds, sometimes. labeled ‘stability bonds,’, may actually be more likely to harm Eurozone stability.

US markets today's announcements: Pending Home Sales Index expected 1.5%

It never hurts to be on the safe side and want to protect your stock position, specially if it doesnt cost you a dime.
Today, we are going to protect Google with a costless collar.
Strategy:
Your are already long 100 GOOG stocks at a current price of $582.93
Sell out of the money call 590 strike 17 day to expiration for about $1090.
With the same amount of money ($1080) buy the protection.
Buy put 575 strike 17days to expiration. (See also covered call)

GOOG costless collar [VIDEO].

US markets today's announcements: Consumer Confidence last was 39.8

Market's beware of the big bad BEAR
Yesterdays holiday cheers encouraged by the IMF news of bailing out Italy and Spain will be sober soon by the world's economic growth continues downgrads.
VIX- yesterday we acknowledged big buyers of Dec 37 and 40 calls. They believe that in the next few weeks  are going to be choppy bouncing markets, probably to the downside. VIX- future term structure still hanging flat on  higher grounds indicating a higher-risk year ahead.
Today's economic event Consumer Confidence last was 39.8 consensus on 45 levels considerable big jump towards the positive area above 50.

SPY bear spread on weeklies  [VIDEO].

US markets today's announcements: housing starts, Initial jobless claims.

Market's trading sideways in a very narrow range for the past month.
Vix Futures term structure flattened on a relative high levels, leaving the market on either way break, most likely to the downside.
ECB is struggling to keep Euro zone together, on one hand Greece with an impossible situation to pay its debt and the other hand Spain that suffers from deteriorating economy and high unemployment rates for years.
US markets today's announcements:
Housing starts - on average are in the low-level  area since December 2008.
Initial jobless claims - the same since March 2011 in spite of government's activities to stimulate the economy.
Today trade: MCD safe bull call.

Safe Bull Call Spread on MCD   [VIDEO].

Todays events: Today consumer price index, consumer price index.

Producer Price inflation pressures moderated in the month of October, mostly influanced by the decline in energy prices, also a Decline in prices of passenger cars and light trucks.
PPI was unchanged in October, analysts expected an increase of 0.1 percent and it came flat.
For the past several years core PPI (ex-food and energy) has been rising more or less steadily, and it only makes sense to expect that inflation is more likely to rise as time passes.

Today consumer price index: August 0.4 percent jump, September increased 0.3 percent.
Excluding food and energy, consumer price index in September came low a 0.1 percent after 0.2 percent in August.

Bull put spread on AAPL and bear call spread on AMZN [VIDEO]

Todays events: ISM non-manufacturing survey for August.
Last trading session clearly showed that we are still in a middle of turmoil, on Friday, we so that  there have been a lot of people waiting for the sign to hit the exits. Technically, on weekly charts we are, however, on  a strong downtrend, else proved otherwise we will face a continuation.  VIX cash gained $2.1 to $33.92, VIX futures still  implying a volatile market, waiting for the September expiration. 
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.  Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Todays events:Unemployment Rate.
ISM expectations for a 48.5, the actual data showed up at 50.6. This sigh of relief manufacturing is not in a recession, by the end of the day the stock market declined in anticipation for today's Unemployment Rate.
Today sensational yet explicitly requested, US Is going to Sue the banks that were involved in the sub prime Mortgages.  VIX cash gained $0.2 to $31.82, VIX futures still  implying a volatile market, but we are starting to see a change it will most likely will come after September expiration. 
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.  Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Todays events:Initial jobless claims, ISM manufacturing Index.

The ADP estimate of new private-sector jobs was a bit below expectations. Initial jobless claims- decreasing new unemployment claims would mean improving labor market.  ISM manufacturing Index- a reading above 50 percent indicate an expanding in US national manufacturing.  VIX cash gaiend $0.61 to $32.89, VIX futures still  implying a volatile market, but we are starting to see a change in the curve and gradually getting its original slope.  
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.  Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Todays events:ADP national employment report, Chicago PMI, Factory orders.

FOMC minutes suggest that further action at September 20-21 meeting
discussed a new form of QE3 easing, ranging from asset purchases, increasing the average maturity of the Fed’s portfolio.
Consumer Confidence - S&P downgrade drove down consumer confidence that fell  14.7 points in August to 44.5.  VIX cash gaiend $0.61 to $32.89, VIX futures still  implying a volatile market, but we are starting to see a change in the curve and gradually getting its original slope.  
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.  Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Todays events: Case-Shiller 20-city Index, Consumer Confidence ..

Yesterday markets performed a huge move on a slender volume, probably, leaving major traders on the bench.   The S&P rallied 2.8%, and the Nasdaq was up by 3.3%. It may be that bulls are anxious to get long on sporadic publications of  U.S. Stocks are, "Massively Undervalued"  and "Gold Gets Bubbly."  One more reason could be that all the world’s central banks are now providing easy money putting the rising inflation worries aside. VIX cash continued to drop this time by  $3.31 to $32.28, VIX futures still  implying a volatile market, but we are starting to see a change in the curve and gradually getting its original slope.  
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.  Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

These week events: EU news stream and the US jobs report..

GDP - Second Estimate came out 1% less than expected 1.1%.
VIX cash dropped $4.17 to $35.59, VIX futures still  implying a volatile market but this week could be a change, and we will see the curve get its original slope.  
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Today's events : Fed Chairman Bernanke speech at the Fed's annual Jackson Hole..QE3!?

Economic event : GDP - Second Estimate will be published at 8:30, prior 1.3%, expected 1.1%.
Yesterday continuing claims 3641K, came out better than expected.  VIX cash rallied $2.86 to 39.76, VIX futures still  implying a volatile market.   
The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Today's events : Initial Claims, Continuing Claims ...  
Economic event : Initial Claims  will be published at 8:30, prior 408K, expected 400K. Continuing Claims will also be published at 8:30 prior 3702K, expected 3700K. Yesterday's Durable Orders came up much more than expected sending the markets to another positive day.    VIX cash down by $0.37 to 35.9, VIX futures still  implying a volatile market although the front month dropped well below 40$ level.   The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers yielded from higher calls IV, means  traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.

Today's events : Durable Orders, Japans dept downgraged by moody's ... 
Moody's Investors Service's downgraded Japan's sovereign debt rating,  Nikkei 225 is down 93 points.   In the annual gathering this Friday, Markets Will Look for a hint on more stimulus in Mr. Bernanke's speech.  Economic event : Durable Orders For July will be published at 8:30 AM , Prior  -1.9% , Market Expects 1.9%.    VIX cash significantly down by $6.17 to 36.27, VIX futures still  implying a volatile market this time was to the upside.   The "UpDown" signals are an outcome of calculated calls and puts implied volatility.Positive numbers higher calls IV traders believe that the stock will rise and are willing to pay more for the calls, the opposite goes for the puts.