SPX and SPY are two very similar instruments from which a trader can choose. Today we will talk a bit about the similarities and differences between the two. What is SPX? SPX is the nickname for the Standard and Poor's 500 Index. It is based on the 500 largest companies whose stock trades on the NYSE or NASDAQ. A list of the 500 … [Read more...] about What’s the difference between SPX and SPY Options?
I came across an interesting announcement from CBOE that they are adding a new SPX weekliy option that expires on Wednesdays! OptionVue and OptionNET Explorer have some work to add the new options into their software now! Here's the CBOE press release: CHICAGO, Feb. 1, 2016 /PRNewswire/ -- The Chicago Board Options Exchange® … [Read more...] about CBOE to List SPX Wednesday-Expiring Weeklys Options
The Round Table meeting had two parts. Tom showed the SPX Broken Wing Butterfly trade he's been trading. Then Jim showed his VXX and UVXY volatility based trades he's been doing. We recorded this event and it is posted in our free members area. Get your free login here if you don't have one already. We hope to see you in the … [Read more...] about The Round Table: SPX Broken Wing Butterfly and VXX/UVXY Trades
Time for a new trade in SPX. Another broken wing butterfly trade expiring on Aug 23rd with 33 days to expiration. The ten lot of puts are at 1945/1920/1860. The 1920's were about a -19 true delta (in OptionVue). I sold two lots at a $1.90 credit and eight lots at a $1.95 credit. I added my put debit spread hedge at 1945/1920 for $5.65. My … [Read more...] about SPX Aug 23 (W4) Broken Wing Butterfly
Jim Riggio discussed the market from a technical analysis point of view. Jim reviewed the economic calendar for last week and showed how the key events affected the market. Jim gave us his opinion of the market action for the upcoming short trading week. Enjoy the video! Next week, Jim will add the VIX to his analysis. … [Read more...] about Market Technical Analysis on Jun 29, 2014
We've had some interesting discussions in our forums about the market topping. Garret is a long time Gann trader and showed us his charts that predicted the SPX topping on June 23 at 1959. The peak yesterday was 1968.17, one day off from Garret's prediction. Considering he did this a long time ago, it is very impressive! Markets climb … [Read more...] about Is this the Market Top?
Jim Riggio, Marc Principato and myself had a meeting yesterday to discuss the market from a technical analysis point of view. If you don't know Marc Principato, he is a Certified Market Technician (CMT) and is primarily a day trader. Marc's command of technical analysis is fantastic and it's great to hear how he analyzes the SPX chart … [Read more...] about Market Technical Analysis on Jun 21, 2014
Time for a new trade in SPX. Another broken wing butterfly trade expiring on Jul 17th with 28 days to expiration. The eight lot of puts are at 1950/1930/1870. The 1930's were about a -22 delta. The trade was put on with a little smaller credit than I like, but it's enough to work with at 0.85 credit per spread. I put the trade on at … [Read more...] about SPX Jul 17 Broken Wing Butterfly
I put a new SPX Broken Wing Butterfly trade on yesterday with 29 days to expiration. It's an eight lot at 1910/1890/1830 with a put debit spread at 1910/1890 for a next credit of $926 on $31,574 of Reg T margin. That would be +2.93% in 29 days if held to expiration and SPX stays above 1910. If SPX sells off below 1910 and stays above … [Read more...] about SPX Jul 11 Broken Wing Butterfly Trade Started
This is an interesting post from Jim Riggio in our forums where Jim discusses his charts and why he thinks the S&P 500 up move is getting strong... Jim's Post My "Momentum" charts are showing that the S&P's persistant move higher is strengthening. ... and my "Oscillator" charts, while high have not yet started to … [Read more...] about The S&P 500 Move Higher is Strengthening