Options Trading

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.

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 economic event :Housing Starts , Building Permits, Export Prices ex-ag, Import Prices ex-oil, Industrial Production, Capacity Utilization...

VIX cash droped by $4.59 to $31.87.  VIX futures still trades abnormally of it's "NORMAL" term structure, still implying higher volatility. Combining the dark stormy clouds hovering Europe  i'd say that we are in a technical correction and  we are waiting  for the right entry point to the downside.
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 : FOMC Rate Decision...

Yesterday's panic will get some rest today waiting for FOMC Rate Decision at 14:15 and maybe some supportive leads. VIX calculated derivatives (Volume Total:41M and prices look at the table below) are at all time high implying maybe a turning point at these levels. Although it doesn't mean that the stock market will stop it's downtrend, because fundamentally we are on a verge of a double deep recession.

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.

Most short term stock traders, from day-traders to swing traders are completely unaware of a tendency that exists in the US markets, that is a tendency to close up or down depending on what day of the week it is! Believe it or not, the day of the week, has been statistically tested, and back-tested over 20years, the results are conclusive that the pattern does exist!.....   read more