Reader Q and A: Straddles and Implied Volatility
Right before the close last Wednesday I placed an ATM straddle that proved to be profitable and I closed it after the IV spike on Thursday. I shouldn't have come back for more, but I placed another ATM straddle Monday before the close and even with the...
Reader Q and A: Straddles and Implied Volatility
Right before the close last Wednesday I placed an ATM straddle that proved to be profitable and I closed it after the IV spike on Thursday. I shouldn't have come back for more, but I placed another ATM straddle Monday before the close and even with the...
Is Volatility a Better Play for Silver than Direction?
It seems as if everyone in the world has an opinion about silver. Is it a bubble? Has it topped? Is it just consolidating before it goes to triple digits?I have been trading silver directionally with a trend-following approach for many months, but rece...
Is Volatility a Better Play for Silver than Direction?
It seems as if everyone in the world has an opinion about silver. Is it a bubble? Has it topped? Is it just consolidating before it goes to triple digits?I have been trading silver directionally with a trend-following approach for many months, but rece...
Leveraged ETFs, Volatility and Range-Bound Markets
I noticed that Direxion, the dean of triple ETFs, has added a handful of tools to their web site recently. These include: Daily/Cumulative Performance Illustrator Tracking Center Recent Volume Tool Volatility Tool Premium/Discount Tool ...
The Elusive Trading Range
During the course of the last year or two, stock market pundits have reminded me a little of politicians in the sense that I have seen a dramatic increase in both the polarization of ideas and the stridency of the tone in which various points of view a...
Sideways Markets, Covered Calls and the RUT
I had originally thought that I might begin 2010 with a series of articles on covered calls and other ways of using options to generate additional returns during sideways market action. Since several other writers have already jumped on this subject (n...
The Sideways Play
The more dogmatic bulls and bears get about the markets, the more I usually begin to pay attention to the possibility of a sideways market. As is often the case, both bulls and bears can make compelling arguments to support their position – and even ...
