The Big Hedge Driving Markets
Free Online Seminar The Next Big Short with Don Kaufman Wednesday, September 7th at 8 PM New York Time / 7 PM Central https://archive.theotrade.com/short/ Thanks to the Volker rule in the Dodd-Frank Bill big banks need to dynamically hedge their positions. This means when the market goes up they need to buy S&P Futures into…
Markets Ready to Break the Range!
We have been warning TheoTraders about the 2160 level all month. Again we saw heavy volume come in today at that level. To the upside the 2180 level has been the one to watch. I do expect to see us break that range after Friday with the unemployment numbers being the catalyst. The only question…
Bonds Rally, Time to Short BAC
While the stock market continues to be stuck in a tight range the bonds exploded higher today. This should be hurting the financial sector yet earlier in the Bank of America (BAC) was up more than 1%. Here's the short BAC trade idea we took today...
Markets Display Serious Risk
Friday saw the highest volume day since Brexit. High volume days happen during volatility spikes. Next week we look towards the unemployment numbers. This will be last unemployment report until the Fed makes their September rate decision. Let's take a look at a few charts that are showcasing risk in the market...
I Think It Moved
First real movement in weeks today. Janet Yellen is speaking at Jackson Hole on Friday and it seems many of the major sectors are preparing for that speech. Take a look at the financials with implied volatility higher than the indexes. Also, let's burst the myth that all options decay over time. Implied volatility on…
Signs of Instability in an Otherwise Stable Market
TheoTraders have seen this movie before. Just when the markets look to be the most stable is exactly when the risk is at an all time high. Tonight let's take a look at where the risk is concentrating around. The answer may surprise you...
Pairs Trading Setup
What are some trade ideas in a docile market? Selling premium is out as there just isn't much premium to sell out there. There are always trade opportunities and luckily TheoTraders know exactly where to look. In this weekend edition let's look at a pairs trade. First a brief crash course on what pairs trading…
$100 Billion Pile of Risk
For the last 30 days the markets have been in a historically tight range. Whether the market breaks out to the upside or the downside TheoTraders need to be comfortable with the risk they have on.
GOOGL Technicals Pointing Towards a Sell-Off
Jeff Bierman joins TheoTrade today. Jeff brings his extensive background in fundamental and technical analysis to TheoTrade. He spent 8 years at thinkorswim and then TD Ameritrade. With Jeff's help TheoTraders are setting up a bearish put spread in GOOGL. TheoTraders are now able to combine probabilities and technicals to create high probability trade ideas…
Massively Unchanged! Get Long Volatility!
With IV at record lows TheoTraders should not sell premium. All it takes is one volatile week to kill your account. With the record lows in volatility there is only one way volatility can go and that's up. Here's how we plan to get long volatility...