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.

Dow Volatility

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My colleague “Dr. Data” from tastytrade sent this out today, which I think you might find interesting. It’s a table of the 30 components of the Dow Industrials with the month-by-month intraday price ranges. He has ranked them by volatility (Boeing the most volatility, Procter & Gamble the least). Click, on the image below for a bigger, more readable version.

Binge Then Purge

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Let me say from the outset that I don’t think Netflix (NFLX) is headed for any big fall from grace. It has been one of the most annoyingly strong stocks, similar to Amazon, in existence. I will say, however, that I think a clean little H&S pattern is in formation, and I’ve secured September $425 puts on NFLX, since I think the measured move (dashed line) is well out of the range of what the options market anticipates (price cone).

Covered Call Backtest

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From our friends at ORATS (which provide Slope with great options data)……..

We ran a large backtest to identify the best maturity, delta, call value as a percent of stock price, earnings strategy, and implied volatility profile for call selling on S&P 500 components.

The Test

Symbols used in the test were MSFT, AAPL, AMZN, PFE, JNJ, T, GOOG, BRK_B, JPM, V, PG, UNH, INTC, VZ, HD, MA making up 30% of the S&P 500 weighting.


Let Me Put It This Way

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Although my “short everything with a ticker symbol” strategy worked great in February and March, it is fraught with risk in this new, fake market. I have thus dialed way back on individual positions (I think I had 100 at one point) to a mere 37. I have re-entered the world of options trading, by way of simple directional bets. Here is precisely what I’ve bought:

July 17 2020 $140 puts