Thursday Options Brief: EL, RFMD & AVGO [View article]
Journalism? It's an options market report from Interactive Brokers. They highlight unusual and interesting trading activity daily.
RFMD saw very unusual put buying today, but high call volume last week on the Oppenheimer upgrade. I think today was just straight put buying -- looking for the stock to fall below $5 through mid-May. Very big volume for this stock.
I get mine from Trade Alert, LLC -- the parent company of WhatsTrading. Alternatively, a good free source is available at the International Securities Exchange web site, ISE. Look for the implied volatility charts in the Quotes and Statistics section of the web site.
VXX includes futures. The fund must continually roll positions and loses value each time due to contango -- longer-term futures are typically more expensive than short-term ones. Look at the long-term monthly VXX chart. It's very ugly.
Only dumb people. One of my mentors once said that. haha.
Not a dumb question. There's 21.3 percent short interest on HNR. Maybe some players also buying puts instead of adding to short positions. Put buying requires less capital.
But, this is just one day's put activity. It could simply be some long stock/long put strategy, which is hedged, but still bullish on the stock. I wouldn't read too much into it, unless there are several days with signs that somebody or people are accumulating bearish positions in the name.
Implied volatility is a measure of volatility for a stock that is priced-in or "implied" by current options prices. It is computed using an options-pricing model. The most widely watched measure of implied volatility is VIX -- which is the implied volatility of the S&P 500 based off of S&P 500 options prices. VIX is at 18 today (18 percent). By way of comparison, HNR is at 137 percent -- which means the options market is implying very high volatility for that stock.
Each individual stock, index, futures, or ETF contract will have a unique level of implied volatility (if it has listed options). The easiest way to check current implied volatility on a stock is probably the quotes and statistics section at the International Securities Exchange web site -- ISE. But your broker and dozens of other sites have the information as well.
Nice! Looking at the open interest, there's 1.6 million open interest in VIX June calls, which expire Wednesday. Only 18,200 of the open interest is at strike prices of less than 19. In other words, 99 percent of the VIX June call options are out-of-the-money with one day left to trade. Ouch!
Thursday Options Brief: EL, RFMD & AVGO [View article]
RFMD saw very unusual put buying today, but high call volume last week on the Oppenheimer upgrade. I think today was just straight put buying -- looking for the stock to fall below $5 through mid-May. Very big volume for this stock.
Wednesday Options Recap [View article]
I get mine from Trade Alert, LLC -- the parent company of WhatsTrading. Alternatively, a good free source is available at the International Securities Exchange web site, ISE. Look for the implied volatility charts in the Quotes and Statistics section of the web site.
Tuesday Options Recap [View article]
Directional butterfly spreads are one of my favorite strategies. I'm not sure about that one in the SPY. It's possibly a hedge.
Tuesday Options Recap [View article]
Thanks for asking!
Monday Options Recap [View article]
Tuesday Options Recap [View article]
Tuesday Options Recap [View article]
Tuesday Options Recap [View article]
Only dumb people. One of my mentors once said that. haha.
Not a dumb question. There's 21.3 percent short interest on HNR. Maybe some players also buying puts instead of adding to short positions. Put buying requires less capital.
But, this is just one day's put activity. It could simply be some long stock/long put strategy, which is hedged, but still bullish on the stock. I wouldn't read too much into it, unless there are several days with signs that somebody or people are accumulating bearish positions in the name.
Tuesday Options Recap [View article]
Each individual stock, index, futures, or ETF contract will have a unique level of implied volatility (if it has listed options). The easiest way to check current implied volatility on a stock is probably the quotes and statistics section at the International Securities Exchange web site -- ISE. But your broker and dozens of other sites have the information as well.
Tuesday Options Recap [View article]
Thanks for the input!
Monday Options Recap [View article]
Thursday Options Recap [View article]
Things picked up a bit on the second half. Roughly 12.5 million calls and 8 million puts. A lot of ex-dividend activity driving high call volumes.
Wednesday Options Recap [View article]
Monday Options Recap [View article]
Good luck!!
Friday Options Recap [View article]
Good catch!