XME: base metals and mining containing steel, gold,etc... Its stil a big uptrend so for the broad market this confirms our bull bias. Use this as an indication to specfic spot prices longer term and specific stocks. (or trade it directly). However watch the trendline... a pullback to that trendline is certainly something to keep in mind.
While broad market implied volatility has basically been absent (we had one VIX pop to ~20 on 9/12, after which it has receded dramatically), it has remained in the same place as it has for the past several weeks -- in gold, mining, and oil and gas, with a smattering of high IV in individual biotech issues. Here are the top high IV stock and ETF options as of...
If you have ever spent more than a few hours in the Stocks and Indices chat room, you'll soon get the impression that the trading universe is seemingly made up primarily of E-Mini S&P Futures, SPX CFD's, and/or SPY (I probably exaggerate a touch, but that's the overall impression I get), along with a repeated frustration with the way the S&P is behaving in one way...
Having the highest implied volatility of all the SPDR's currently, I'm looking to sell a small amount of premium here at the 30 delta strike approximately 45 DTE as a possible alternative to doing a covered call in a mining underlying (such as GDX, GDXJ, KGC, AUY, HL, etc.). Here are the metrics: Probability of Profit: 74% P50: 89% Max Profit: .66...
Following the premium. With a nearly 70% implied volatility rank and an implied volatility slightly north of 50%, I'm going nondirectional here (what's new) with this short strangle. Metrics: Probability of Profit: 65% P50: 78% Max Profit: $107/contract Max Loss/Buying Power Effect: Undefined/~$250/contract Theta: 2.55/contract Delta: -7.55/contract Notes:...
It continues to look like it has nowhere to go but down. We'll see.
The chances of it going down is much greater than the chances of it going up. We need to watch the lines.
Knowing when to get into contrarian assets is essential to trading in Keynesian markets.
Use it with benevolence and love. Use it to pursue peace and serenity. Keep in mind that Doing cannot do much without Non-doing.
Watch the lines. This chart tells us when to switch from bubble assets to contrarian assets.
Watch the lines. This chart tells us when to switch from bubble assets to contrarian assets.