Options Trading

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].

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.

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 : 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  on the board: QE3 ... 
Record-low yields on U.S. Treasuries shows that institutions already priced the third quantitative ease .     VIX cash didn't move as much, up $0.38 to $43.05, maybe waiting for the Federal Reserve Chairman Ben S. Bernanke statement.  VIX futures still  implying a volatile market.   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.

Today on the board : Wholesale Inventories...

Yesterday, as presumed we had some rest of this current turmoil.  Today waiting for wholesale inventories at 10:15AM maight unveil some supportive leads about our fragile economy. VIX calculated derivatives (Volume and prices look at the table below) retreated from all time high and we are starting to see maybe a turning point.

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.

Using the VIX as an indicator
What is the VIX? The VIX or Option Volatility Index is a measure introduced by the Chicago board of options exchange (CBOE), it is an index that measures how volatile the market is expected to be in the next 30 days!...Read more