All posts by Daniel Darrow
Options In Play: The IV Consolidation Crush
A choppy few day consolidation may not be providing the crazy action we have seen recently. But it is creating better setups for options into earnings reports. Smaller ranges and lower VIX = IV crush and cheaper options overall.
Continue Reading -->Options in Play: STZ Earnings Breakdown
It’s deja vu all over again. I highlighted the multiple similarities between FDX and STZ as each approached earnings and STZ’s ugly move today cemented the comparison. It’s time to think less about up or down for the stock and focus more on what the options are saying.
Continue Reading -->Why Options Traders Should Look Forward to Holiday Retail Sales Results
M and a slew of the brick and mortar Retailers are officially on watch for holiday sales updates. Last year there was an incredibly busy stretch of Retail numbers the first 2-3 weeks of January so we entering that window now.
Continue Reading -->Why Options Traders Need to Do Their Homework
If you are surprised by all the wild swings in stocks today you shouldn’t be! The JPM Health Care conference is one of the biggest events of the year and companies announce when they are presenting so doing a little homework gives you a calendar of potential trade ideas.
Continue Reading -->Spotting Relative Strength/Weakness for Options Trades
The Santa Claus rally ended up coming right on cue and now the strong rebound off the low is giving us the opportunity to spot relative strength/weakness. This is very helpful if you are looking to initiate swing longs and shorts.
Continue Reading -->Was FDX Down Too Much Ahead of Earnings? Think Again!
Think FDX was down too much before earnings? Think again. Trading options into earnings is not necessarily about being bullish or bearish but recognizing when a stock could be setting up for a much sharper move than anticipated.
Continue Reading -->Options in Play: Setting Expectations for the FOMC
The FOMC rate decision Wednesday will be the biggest market moving event for the remainder of the year. Options are pricing in significant moves across multiple assets so buckle up for a busy session.
Continue Reading -->Options in Play: Earnings on the Radar
It’s Friday so that means earnings on the radar time. This coming week is the last full trading week until January and the last chance for companies to report before they enter the holiday quiet period.
Continue Reading -->So What’s Up with the VIX?
We have had a consistently elevated VIX for a longer period of time. People are drawing parallels to early 2016, so let’s talk about what that means for the market:
Continue Reading -->Why It’s a Great Tape for Calendar Spreads
Expensive near term contracts into a seasonally quiet time of year? Calendar spreads could be entering a sweet spot thanks to higher than normal recent volatility.
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