Have you seen the VIX lately?
18.53? Seriously?
Well, some of you asked for it and now look what you get in return - low options premium. Sellers of options need volatility, we thrive on volatility. Volatility is our friend.
But volatility is at a six-month low, which raises hopes that a calmer market will bring in more investors. There is certainly no doubt that most risk is tied up in bonds right now, but once investors are willing to take on more risk they will move back into the stock market. The question is when.
“Lower volatility is like a . . .
Read Full Article
Last week I recommended an options spread on AAPL prior to its earnings announcement on Tuesday. The spread would have made money if the stock fell, remained the same, or rose moderately. The only scenario where a loss would take place was if it shot considerably higher.
I believed that since the stock had already gone up $50 over the last month, much of the expected earnings blow-out had already been priced into the stock.
I was wrong, and the stock soared about $40 on the announcement. Today I would like to discuss what we did about it.
Read Full Article
Simply stated, the rally continues.
Nothing, and I mean absolutely nothing can hold this market down.
Numerous downgrades from Fitch, Moody’s the S&P and more importantly the World Bank, more European woes, news of inevitable Greek default, financial sector struggles, among bearish technical and seasonal readings hasn’t helped the bears at all during 2012.
As a result, the market has managed to advance on ten of the past twelve trading days leading to gains of 4.6% in the S&P 500, 4.1% in the Dow and a staggering 7.0% in the Nasdaq – in three weeks, yes, three weeks.
If you tack on the gains since December 19th, when this rally started, the gains are . . .
Read Full Article
Follow Terry's Tips on Twitter
Like Terry's Tips on Facebook
Watch Terry's Tips on YouTube