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.
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.
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).
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.
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.
(more…)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:
