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Fari Hamzei's  Instablog

Fari Hamzei
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Fari Hamzei is frequently quoted by CNBC, Bloomberg, Fox Business and RealMoney. His book, Master Traders: Strategies for Superior Returns from Today’s Top Traders, published by John Wiley & Sons in October 2006, has already become a bestseller on Amazon trading books space. On January 29th,... More
My company:
Hamzei Analytics, LLC
My blog:
Hamzei Analytics Financial Network
My book:
Master Traders
View Fari Hamzei's Instablogs on:
  • My Interview with @MissTrade

    MissTrade Missive with Fari Hamzei of @hamzeianalytics from miss trade on Vimeo.

    Sep 19 9:38 AM | Link | Comment!
  • Inflation and the Fall of the Roman Empire


    A Must Read for All  http://mises.org/story/3663

     

    Tags: INFLATION
    Sep 19 9:17 AM | Link | Comment!
  • More color on that gigantic SPY put trade on last Thursday
    I now have more color on that gigantic SPY put trade (720K contracts) executed last Thursday on ISE:

    It was a 120K by 240K put backspread rolled from August to December, executed on behalf a major US-based hedge fund;

    120k of Aug 92 puts were traded up to Dec 95 puts

    and

    240K of Aug 80 puts were traded up to Dec 82 puts;

    the transaction was virtually fresh cash-neutral for the fund.

    -------------
    What is a "put backspread" ??

    From OXPS education webpages:

    Put back spreads are great strategies when you are expecting big downward moves in already volatile stocks. The trade itself involves selling a put at a higher strike and buying a greater number of puts at a lower strike price.

    Ideally, this trade will be initiated for a minimal debit or possibly a small credit. This way, if the stock gains ground, you won't suffer much either way. On the other hand, if the stock drops as you hope, the profit potential will be significant because you have more long than short puts. To maximize the potential for this position, many traders use in-the-money options because they have a higher likelihood of finishing in-the-money.

    ------
    http://www.optionsxpress.com/educate/strategies/putbackspread.aspx
     
    Tags: SPY
    Jul 28 11:35 PM | Link | Comment!
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  • AMZN is trading just above +2 sigma. AMZN rallied early last week as price has increased but with low volume and on Friday it faltered.
    Aug 3, 2009
  • Amazon (AMZN) Sept Credit Spreads: SELL to Open Sept 90 Calls (QZN IR) and BUY to Open Sept 95 Calls (QZN IS) at $1.70 or better;
    Aug 3, 2009
  • STJ is trading at -1 sigma. On 7/22, large down day under extremely heavy volume; price then recovered to close the gap then backed off.
    Aug 3, 2009
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