Trader Chat: Dan Passarelli Pt. 3 - Trading on the Floor, Market Makers, and Mentoring
20 Option Straddle Ideas for High Beta Stocks & Expected Volatility
As stated in Friday's blog post, the Volatility Index (VIX) is below 25 which shows signs of the market stabilizing, however I still believe this market could sell off. Usually as the market sells off the Volatility index increase as the amount of put options surge. However, the market could also continue this rally as earnings may continue to surprise.
Assuming we’re long anything at this point, what puts would we use as a hedge, and how many do we need? First, we have to figure out how our portfolio moves in relation to the market. We know that four out of five stocks move in the same direction as the market trend, but by how much? Two numbers can give us a pretty good idea: beta and R-squared...
Some Days Are Just Better Than Others; This Was Not One Of Them
I will try to get back here and right an intelligenct report on today’s stock market action. But it can basically can be summed up as “we are biding our time.” We are still simply waiting to see which direction volume is going to come in. If it is for the bulls, we are going to have a great time as we have a lot of very pretty charts now setting up.