Options Trading

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

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.

Today's main event :Standard & Poor's president Deven Sharma resigns... 
Standard & Poor's president Deven Sharma steps down followed by the credit rating agency's decision to historically downgrade US debtis.
Economic event : New Home Sales For July will be published at 10:00 AM , Prior - 312K , Market Expects 300K.  This event will take second roll today.   VIX cash did not move much, down by $0.61 to 42.44, VIX futures still  implying a volatile market this time it looks like 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.

Yesrday's economic event : CPI,   Core CPI... 
Higher than expected CPI, meams, higher inflation to already slowing economy, ten year US bonds yielding historically record low 2.06%, we cant see it other than  realy bad news.  Even low price to ernings average ratio wouldn't help due to a deteriorating business enviroment.   VIX cash rallied a $11.09 to $42.67 chalenging its last pick and most likely to break the ceiling.  VIX futures still trades abnormally, still implying higher volatility.   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's economic event :PPI, Core PPI...

VIX cash gained $0.98 to $32.85.  VIX futures still trades abnormally of it's "NORMAL" term structure, still implying higher volatility. Combining global market probability is more than 50% to the downside.
Our vision is, side ways to down market for the next 6 mo.
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