Options

What The VXST:VIX Volatility Ratio Is Saying About Stocks Now

With the lack of a buyable stock market dip dominating the financial news (see: WSJ’s “Markets’ Steady Climb in 2017 Defies Historic Odds“), many traders are waiting for an opportunity to enter the market on the long side and participate in what is shaping up to be a low volatility…

Options Education: How To Trade Put Ratio Spreads

The put ratio spread is generally considered a neutral options trading strategy, although it has the ability to make a profit in up, down and sideways markets.  For more, check out my ultimate guide to trading Put Ratio Spreads. Yes, it can make money no matter which way the market…

S&P 500 Breakout Remains Unlikely Near-Term, Here’s Why

Market dips continue to get bought, as volatility struggles to hold on to gains. On the S&P 500 large cap index (INDEXSP:.INX), bulls forced a break out of 2400 five weeks ago.  Just a few days afterwards, the breakout was defended (Chart 1 below). So far this month, downward pressure…

Is The VIX Volatility Index Signaling Caution Here?

I’ve had a great response to my Dow Award paper, Forecasting a Volatility Tsunami, with it being downloaded over 3,000 times since April. I really appreciate the support and the positive feedback I’ve received so far. Last week I had the opportunity to do a webcast with the Market Technicians…

A Closer Look At Kimberly Clark’s (KMB) Bullish Options Action

Kimberly Clark Corp (NYSE:KMB) Bullish Options Action Focuses on Margin Expansion, M&A Below is an example of the format for OptionsHawk 2017 2H Open Interest Report. For more detailed analysis of 60 stocks with 2H catalysts, check out: OptionsHawk 2H17 OI Report.   Kimberly Clark Corp. (KMB) $130.80 – Consumer…

Nasdaq 100 Volatility Index Fades As Tech Stocks Recover

The panic associated with the recent carnage in tech stocks and the Nasdaq 100 (INDEXNASDAQ:NDX) has begun to subside; but is it too soon to exhale? It is apparently tech week here in our blogs – and every other Financial news media site, as well – as the coverage is…

Is The Russell 2000 About To Break Out To New Highs?

Volatility has been eerily absent from the market lately with the ViX Volatility Index (INDEXCBOE:VIX) trading at levels not seen since 2017. Short volatility has certainly been the number one game in town so far this year.  For Iron condor traders, particularly those that trade the Russell 2000 (INDEXRUSSELL:RUT,), 2017…

Trupanion ($TRUP): Pet Insurer Breaks Out To New Highs

Unlike a typical life & health or property & casualty insurer that addresses human risk management needs, Trupanion (NASDAQ:TRUP) is focused on the medical needs of our cats and dogs. Investors are taking note of its business, as a Trupanion stock breakout may be under way… more below. The $511M…

Did Volatility Traders Overreact Again Last Week?

Volatility expectations took record jumps during Wednesday’s “big” selloff. Last Wednesday saw the stock market break out of its historically tight trading range – and it did so in dramatic fashion. After, for example, trading in a 16-day low-high range of barely 1%, the S&P 500 (INDEXSP:.INX) nearly doubled that…