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Expert technical analysis of financial markets by JC Parets

[Options Premium] Continuing to Feed the Volatility Ducks

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When the ducks are quackin’… feed them!

With volatility still up since Friday afternoon’s stock market freakout, we’re going to continue to take advantage of this volatility rise to add an additional, much-needed delta-neutral credit spread to our portfolio to diversify our risks somewhat.

So today I’ll be positioning into an index ETF near the top of the implied volatility charts. [Read more…]

[Options Premium] Selling Some Shiny Premium

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“Jackson Hole” has delivered volatility once again. Seems we can always expect fireworks when the bigwigs gather at a luxury resort in the mountains. Must be nice…

We’re going to take advantage of some of this volatility by positioning into a delta-neutral credit spread in the highest implied volatility ETF currently on the board.

Let’s get to it.

[Read more…]

[Options] The Boys Are in the $HOOD

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That’s right, we’re in the ‘hood. Robinhood stock $HOOD, that is.

Steve Strazza has been pounding the table about this name for so long that JC and I finally relented and agreed that it’s starting to become that “put up or shut up” time.

With the stock swimming just below $10 per share, JC said: “Let’s just leverage into this thing! If it’s gonna work, we’ll crush it. If it’s not going to work, we’ll know pretty soon. Below $9 we’re out.”

Here’s the chart that has our attention:

The AVWAP from all-time lows is our support.

Right on. High potential reward for limited risk is my kind of play.

So we’re going to play this one with a Bullish Risk Reversal, having naked short puts pay for our long calls exposure. [Read more…]

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