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Posts tagged "strangle"

Strangle Player Bets on a Big Move for UAL Corp.

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United Airlines parent UAL Corp. (UAUA) was singled out for a directionally neutral spread strategy on Wednesday, with one options trader betting on near-term volatility for the airline...

SPX 1070 Looms Large…Again

Like any stock index, from time to time the S&P 500 index seems to hand pick a number and make it an important support and resistance level. Sometimes these lines in the sand are ephemeral and sometimes they persist for extended periods. Take SPX ...

Ambitious Trader Strangles Buffalo Wild Wings Ahead of Earnings

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Humble restaurant chain Buffalo Wild Wings (BWLD) is scheduled to release its fourth-quarter earnings report after the market closes on Thursday, Feb. 11. Ahead of the event, analysts surveyed by Thomson Reuters are looking for...

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...

SPX Strangle Pong Post-Mortem

When I first broached the idea of Strangle Pong (a strategy of selling a front month strangle in the SPX), I had every intention of periodically following up to offer comments on the strategy, how it was or was not working, and how a trader might manag...

Strangle Pong Update

On October 30th, in Strangle Pong, I talked about the possibility of legging into an S&P 500 index strangle, starting with the sale of a November SPX 1040 put and looking to sell a November SPX 1100 call when the index rallied back over 1080. Here...

Pullback Surpasses 2009 Mean

While this might not provide a great deal of comfort to longs, I have updated the VIX and More Pullback Table to reflect today’s selloff. The table shows that the peak to trough drop of 67.98 points (6.2%) in the SPX has exceeded the 2009 average of ...

Strangle Pong

For the moment at least, it appears as if the S&P 500 index has encountered strong resistance at 1100 and strong support just above 1040. Assuming these support and resistance levels can hold up for another three weeks – and that is admittedly a ...

Implied Volatility Flat Ahead of Bank Earnings

With some very important earnings in the financial sector coming up this week (JPM on Wednesday; C and GS on Thursday; BAC and GE on Friday), I have been watching implied volatility (IV) in the sector very closely. Much to my surprise, implied volatili...

VIX Defining a Range Between 22 and 30

The CBOE Volatility Index, which is usually referenced here by its ticker symbol, VIX, seems to be settling comfortably into a range between 22.00 and 30.00 that is has traded in since early July. Given that the relatively narrow eight point range has ...

McDonald’s disappoints strangle speculator with Q2 results

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As Melly Alazraki noted earlier today, McDonald's Corp. (NYSE: MCD) is one of many heavy hitters to take the earnings stage today. Unfortunately, the fast-food firm didn't...

Round Number Magnet Strangle

The power of round numbers does not seem to receive a lot of play in investment circles. Sure, there is the psychological significance of an index or a stock crossing above or below a round number, but I am surprised that nobody ever talks about how to...