Option Bears Reloading as Bulls Feeling Spry
The bulls appear to be feeling like they've accomplished something as the market looks to be positive two days in a row. However, as the bulls have their moment, the bears are adding bearish options positions and rolling up into the strength. Let's look at some key ETFs that had unusual bearish options activity (XLB,…
Fed Rides the Painted Pony on Rates as the Inflation Wheel Spins
The Fed kept policy in line with the recent rise in expectations with a 75 bp move. While the market received the news relatively well, the outlook is diminishing and the Fed can't seem to find a directing sign on the straight and narrow highway. Which means more Blood, Sweat and Tears for millenials who…
AMZN Stock Split not Enough to Carry...Where's Goldilocks?
Amazon Inc (NASDAQ: AMZN) 20:1 stock split generated a lot of option activity today, but finished well off of its high. The lack of momentum carried over to the broad market as well as they finished just off it the lows. The lack of ability for an innocuous event like a split to create much…
Fed on the QT. What Does that Mean for the Bulls?
The Federal Reserve is about to start its quantitative tightening (QT) plan. Looking at their balance sheet, it made a tick lower last week as their plans to wind things down is about to begin. While reducing the monetary stock may have a negative impact for risk assets, it's inflation that they will have trouble…
Are Bonds About to Break Again? What About Financials?
Yields rose with the broader market today and bearish option interest builds in the bond space. What's next for financials and REITs if yields continue to move? The option market is giving a heads up how to position yourself in the short-term. (TBT, TLT, SYF, LQD, IYR, DFS, BX, DB, TTWO, PM)...
Bernanke Skewers Powell as Market Pauses, VIX Falls and Commodities Pop
Bernanke blasts Powell for being too accommodative and not willing to 'shock the market.' He also added a few words on the future of Bitcoin and cryptocurrency. Meanwhile, stocks hesitate, the VIX falls sharply and the commodity rally is reignited. Also, a look at what comes next. (OXY, AAPL, TLRY, CVNA, IYR, TLT, LLY, T)...
Where Have All the Buyers Gone? Is It the End of BTD?
S&P 500 slides to 13-month lows as Bitcoin gets slammed over 12%. Where have the dip-buyers gone? The fatigue in retail is palpable as today marked the largest outflow in years. While the outflows were apparent in most sectors, staples were almost unchanged on the session. Unusual option activity shows weakness in consumer finance companies…
Roller Coaster Market Ends Higher Ahead of FOMC Announcement
Do you like volatility? You better get used to it after a late day rally saw Tech lead. With the FOMC set to raise another 50bp this week, the back-and-forth isn't likely to go away any time soon. While the market is roiling, it's commodities that are firming up near support with big UOA trade…
Rally Back or Ready for Another Smack?
The major market indices rallied strongly off of the lows to end the sell-off...for now. What's next? Is this just a bearish reset, or do the bulls have any legs left to carry the market higher. A look at today's unusual option activity gives some indication of how the bulls and bears are positioning themselves.…
Iron Condors - The Basics
Most traders struggle making money trading directionally, especially at first. The idea of consistently picking the right stock and selecting the right option trade often leads to quick losses. This is a result of traders being initially being drawn to the unlimited profit potential of buying options but fail to understand their low probability…