Market Musing 7-10-2018, Low Volatility Trading, Selling Puts vs Bull Put Spreads
Topics for Indianapolis DNOWS Options Trading Group:
Bob Shenberger - Markets Trends
Ken Yamasaki - BPI and RSI
George Crawford - Market Musing and Selling Puts vs Bull Put Spread Case Study
1. Low Volatility: 12.69
RUT and QQQ are headed to new highs. Can Dow and SPX can follow? The SPX Options are pricing in range for the week is +- 30 or 2740 to 2800. Trump Tariff Wars and Fed Rate Hikes have all been tradable news events. Jobs number remains healthy and GDPNOW is forecasting 3.8% for 2Q. Back to low volatility trading: Diagonals, Calendars and Debit spreads.
2. E-currencies vs US Dollar
Bitcoin new range is 5800 to 7800. There are significant ramp up in blockchain transactions. Does that mean Crypto will finally catcha bid for the ½ half of 2018. Check Blocktivity.info to see daily blockchain activity. First time I have seen a single blockchain with 5Million daily transactions! This is still a trader’s environment, where you can buy or sell a small positions and take profits quickly. Are you mining cryptos in private wallets yet? US Dollar is range bound between 93 and 95.5
3. Cherry Picks Newsletters
Tasty Trade Researchers publish an awesome weekly newsletter every Tuesday. In addition, Dr. Data has done a quarterly analysis on earnings trades. Check out the link below. If this blog sounds like gibberish, watch "Where do I start 101" free education series on Tastytrade.com
4. Trump Trades:
Invest in Twitter. All executives are using twitter for direct access to clients, customers and citizens.
Tariff / Trade Wars - Short China, Short Solar, Short American Farmers, Short Global Automakers and Long Oil.
5. TRADE Log: VIX < 13
- Broken Wing Butterfly, Dynamic Iron Condors
- Calendars, Diagonals, and Debit Spread
- Long Volatility in VIX
- Antipin in TSLA, BIDU, GS..
Rising Star: Analyst/Entrepreneur/Mom Also Maintains High Win Rate Trading Options