On October 13, the eve of JPM’s Earnings Announcement, Admiral found a great trade opportunity: Buy a 1x4 67.50/70 Call BackSpread. Maury followed the Admiral without hesitation.
Before the market opened, JPM’s earnings beat the estimates and revenue. However, the price action was fairly muted for the balance of October.
Maury had the jitters, along with the market, due to the upcoming general elections. He was not used to waiting to get paid on a trade, but Admiral already had that[...]
On Monday, October 24, Admiral sent out a call spread on Lockheed Martin in anticipation of a bullish Earnings Report due PreMarket on October 25.
The DEC 240/245 call spread was filled @ $1.24.
Lockheed Martin announced 3rd Quarter Profit earnings of $3.61 per share on Revenue of $11.6 Billion and easily beat the estimates.
Being in profit with more than 150%, Admiral had the order ready to sell at the open, which was filled @ $3.10, not bad for a one day trade. As for Maury,[...]
Maury, Maury, Maury!
Admiral SPO Puts his Mark on Microsoft.
Knowing Maury’s thirst for shekels and his motto of "the best things in life are FREE" the Admiral launched a timely pre-earnings trade, a call time back spread.
Maury, known for his Pavlovian behavior jumped in! On Thursday, October 20th, the day Microsoft earnings were scheduled to come out after the bell, one day prior to OCT options expiration
Admiral sent out the mother of all Maury trades at 2:56 PM CT:
In August, Admiral SPO delivered a great BIDU trade. Most HA Options Members were very grateful for such a brilliant gift from our fearless leader. As usual, Maury was exception to the norm, whose greed was only fueled by the talent at his disposal. He immediately began nagging for another over the top winner. Since Maury is not to be ignored, Admiral SPO obliged with another trade.
On September 8, Admiral SPO sent out a QCOM Straddle: Buy the OCT 21 Expiry 62.50 Calls and 62.50 Puts. QCOM[...]
Maury felt pretty smug about taking the Admiral’s FB trade, however, he was not prepared for BIDU. The Admiral had his mojo working as he went stalking an uber Maury trade, and it ended up a doozie!
On 7/28, BIDU was scheduled to report earnings after the close.
The Admiral sent out a Bearish 3x9x6 AUG Put Vertical Ratio Spread: +160/-145/+140 strikes, paying $2.35 x 3
While EPS was slightly above expectations, BIDU opened down and the Admiral sent an order for a partial exit #732A: Sell[...]
In the lively chat rooms of Hamzei Analytics, Maury tales are abound. Saying Maury (a fictitious character) is frugal, is an understatement. His motto is “What’s for free, is for me”. At the very least, he hates wholesale prices and want to buy below cost, thus negotiates for the best bargain.
He has set the standard for getting the most out of our options trades. We have come to appreciate the “Maury” trades in the HFT Options Trading Chatroom. Old[...]
Chart 1: VIX Sigma Channels Chart
Worth noting is that VIX hit +3 sigma on Thursday before last in post-Brexit trading, creating the second spike in volatility for CY 2016. While June lows of SPX are expected to be tested, the timing ideally should be a bit further out in late July, with spot VIX targeting 24 to 27 range, as this retest in volatility comes in about 4-5 weeks apart.
Chart2: VIX Futures 3-mo. Spread Indicator
This 3-mo spread is favorite of[...]
As the S&P-500 Cash Index (SPX) has become the de-facto benchmark for the US equity markets (DJIA belongs to the abacus era), picking tops and bottoms of the SPX has become a favorite of many market timers.
As we all know, volatility at market tops tend to be relatively low, while at the bottoms it tends to spike. Taking that information and turning it into a time series provides a reasonable quantitative tool with which we can reliably pick bottoms—and perhaps also tops—in SPX within[...]