The Dow Industrial fund DIA does a nice job illustrating how yesterday’s oversold condition was relieved. Notice how we are precisely at the trendline. My hunch: hard down day tomorrow.
Oversold Burnoff
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Options Basics (by Xerxes)
I thought I’d write something up to be a little more fundamentally educational rather than making guesses on market or stock directions. There is a lot of excitement recently regarding 0DTE (zero days to expiration) options. I don’t intend for this to be an all encompassing educational post, just a general walkthrough of how Options are priced, how they move, and why these particular types of options are so attractive in this trading environment.
What Is An Option?
An Option is a Derivative contract, meaning its value is based on an underlying security. The 2 key features of a contract are its strike price and an expiration date. A Call Option gives the contract owner the right to buy the underlying security at the strike price. A Put Option is the opposite in that the owner of the contract has the right to sell the underlying security at the strike.
(more…)Shorting the Miners
I’ve taken profits on some banking shorts (BNS, PRU), moved more heavily into cash (about 20%) and am getting more aggressively against precious metals (as my Gold/Platinum folks know).
Battle Hymn of the Republic
Yikes. There goes First Republic. I guess the Central Banks haven’t saved the day, huh? I have seen full color full page ads for this bank for years, and it almost always features rich people talking about how much they love it. The speed of this collapse is kind of eye-popping………..
Repo Man
