Update (with news from the Option Pit)

Well that brief rebound got crushed, didn't it? At this writing (12:50 CDT) the Dow is down 56 points after being up 46 in early going. And, I think I have a reason why. Or at least, important information. One of the advantages to you, Dear Reader, in reading my...

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Update (continued)

So... as to this morning.... Here's an idea: I am a large institution, trading house, whatever. And I want to take a Bearish view on the market and buy volatility (Vega). I buy 80,000 at the money calls on the opening. The counter party to this trade are market...

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It’s Test the Rally Time

Well, it certainly looks like last week was a great selling opportunity after all. Whether that sell is just a trade or the beginning of a true reversal remains to be seen. But pre-opening suggests that the major averages will open down about 1% and I certainly...

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Puts are Protection

Well, to absolutely no surprise, the market is selling off some today. I don't know if this is the start of a larger reversal or simply the market taking a breather but yesterday, as I suggested, was a good selling opportunity. One of the things that surprises me in...

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When There’s Nothing to Do, Do Nothing

Unless you are a professional trader there is absolutely no reason to trade every day. The past couple days being examples of a slow and basically unchanged market. As I am typing this, however, the Dow is rallying strongly, up 57.5 points to 14513 (first time ever...

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Market Commentary

Sometimes social/political stuff thrown in for good measure