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Dr. Terry Allen

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  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    I am sorry I did not make it clear that the puts you buy on Friday will expire that day and the calls will expire a week from that day. By the way, today AAPL opened up down sharply and since I expected an up day, I bought 520 calls for $14 shortly after the open and placed an order to sell them at $20 which executed about an hour and a half later, so I took off the rest of the day with a nice gain.
    Dec 10 04:47 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    If you own a 530 call on Jan 2014 and the stock is trading at $700, your call should be worth $170 (maybe more if it hasn't expired yet). I hope you are right.
    Dec 10 03:30 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    Downticks on Fridays and upticks on Mondays seems to have been the predominant case even before the recent downtrend, but who knows if it will continue forever. If the explanation is actually with call-writers selling calls on Fridays, the trend should continue in an up market as well.
    Dec 10 03:28 PM | 0 Likes Like |Link to Comment
  • Black Swan Insurance That Might Pay Off Even If There Is No Crash [View article]
    The prices I showed were exactly the market shortly after the open on Friday, November 28. If you have an account at thinkorswim you can use their OnDemand feature and go back and see the exact option prices on that morning.
    Dec 4 02:41 PM | 0 Likes Like |Link to Comment
  • A Far Better Volatility Play With Significant Upside, Should We Go Off The Fiscal Cliff [View article]
    Those prices were available on Friday morning, November 28 when I wrote the article. It could have been executed as a spread at $1.25. If you have an account at thinkorswim you can use their OnDemand feature and go back and see exactly what the option prices were (bid and ask) just after the open on that day.
    Dec 4 02:36 PM | 0 Likes Like |Link to Comment
  • A Far Better Volatility Play With Significant Upside, Should We Go Off The Fiscal Cliff [View article]
    While what you say is true, these options expire in only 15 days so the difference between spot VIX and the futures is inconsequential. If we were trading further-out months it might make a difference.
    Dec 4 10:07 AM | 0 Likes Like |Link to Comment
  • A Far Better Volatility Play With Significant Upside, Should We Go Off The Fiscal Cliff [View article]
    I do understand that - it is where contango comes into play.
    Dec 3 10:23 PM | 1 Like Like |Link to Comment
  • A Far Better Volatility Play With Significant Upside, Should We Go Off The Fiscal Cliff [View article]
    Thanks for your kind words. We have both been through similar times with VXX.
    Dec 3 08:11 PM | 1 Like Like |Link to Comment
  • A Far Better Volatility Play With Significant Upside, Should We Go Off The Fiscal Cliff [View article]
    Thanks for your kind words. Of course, if you short VXX and the crash does come, you get killed. Not so with the long VIX calls.
    Dec 3 06:15 PM | 2 Likes Like |Link to Comment
  • Black Swan Insurance That Might Pay Off Even If There Is No Crash [View article]
    I guess you were lucky. Those calls trade with almost no premium in them but buying below intrinsic value is nice when it comes along. Congratulations!
    Dec 3 05:26 PM | 0 Likes Like |Link to Comment
  • Black Swan Insurance That Might Pay Off Even If There Is No Crash [View article]
    That is probably a good deal as well. I like the premium decay on the December options though (I think nothing will get done by the 19th and enough uncertainty will continue to keep VIX up nicely). Once they expire I'll probably do something similar for January.
    Dec 3 05:23 PM | 0 Likes Like |Link to Comment
  • Black Swan Insurance That Might Pay Off Even If There Is No Crash [View article]
    Unless things really settle down in Europe and we get our unemployment rate way down, I think VIX will remain above 15 for quite a while. Fear is all over the place, especially with Iran and Israel unrest and terrorist possibilities all over the world.
    Dec 3 12:22 PM | 0 Likes Like |Link to Comment
  • A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
    Options on VIX are a much better to provide volatility insurance because you don't have to worry about contango. See my article published today by SA - Black Swan Insurance That Might Pay Off Even if There's No Crash. It makes 50% in one month even if VIX does not move higher, and more if it does.
    Dec 3 11:18 AM | 2 Likes Like |Link to Comment
  • Black Swan Insurance That Might Pay Off Even If There Is No Crash [View article]
    VIX has never been that low and probably never will be. There will always be market volatility no matter how complacent people get. On the other hand, VXX will surely get that low sometime soon.
    Dec 3 08:06 AM | 0 Likes Like |Link to Comment
  • Intel Inside The Apple iPad? It Makes Sense! [View article]
    Great comments. Thank you.
    Dec 2 09:16 AM | 0 Likes Like |Link to Comment
COMMENTS STATS
180 Comments
76 Likes