Cobra's Market View

jarbo456 wrote:

Al_Dente wrote:Where is all the selling volume? Only in the overnight markets? What’s a day trader to do?

Last Thurs on Fast Money, guest trader described the hedge “all the traders were taking” to protect against The Bernank Twist and all other evils: At SPY 121-ish, they were buying Oct SPY 110 puts and selling the Oct 126 calls. At near net-zero cost (at circa 8/31 and 9/1 prices), the traders are protected below 110 SPY with the puts, AND THEY DON’T HAVE TO SELL THEIR STOCK.

He failed to mention how these “traders” would cope in the loss gap between 121 and 110 SPY before all that “protection” kicks in.

Okay then, we gotta buncha “traders” who aren’t selling their stock, hmmmmmmm.

i'm sure someone else can speak to this better than i, but my personal opinion is that those FM guys are good at what they do, however, i would never consider their recommendations. 1) i think they are probably already in those positions or out of them before they announce it 2) consider those positions, but it's hard to say if they're actually in them at all with real money 3) are dealing with far larger amounts of capital then your "home gamer" (as they love to call us), and as a result, have hedges on core positions while still retaining many millions of dollars to trade in the short term.

either way, it's hard to gain an apples to apples comparison with what they do and what you at home can possibly do.

speaking to that particular trade setup - the foundation of option straddles is that they need time to "work out". if you can't endure the pain, nor willing to pay the theta on the straddles, then any type of multi-option strategy probably isn't for you.

Grizzly wrote:AAPL is hanging in there... more up ?

99er wrote:Hey honey...what's that overhead?
BKX http://99ercharts.blogspot.com/2011/09/bkx_06.html

WTF? Three [Gapping] Black Crows?

Al_Dente wrote:

jarbo456 wrote:

Al_Dente wrote:Where is all the selling volume? Only in the overnight markets? What’s a day trader to do?

Last Thurs on Fast Money, guest trader described the hedge “all the traders were taking” to protect against The Bernank Twist and all other evils: At SPY 121-ish, they were buying Oct SPY 110 puts and selling the Oct 126 calls. At near net-zero cost (at circa 8/31 and 9/1 prices), the traders are protected below 110 SPY with the puts, AND THEY DON’T HAVE TO SELL THEIR STOCK.

He failed to mention how these “traders” would cope in the loss gap between 121 and 110 SPY before all that “protection” kicks in.

Okay then, we gotta buncha “traders” who aren’t selling their stock, hmmmmmmm.

uempel wrote:Don't know how to trade this. Today ain't my day, I'm off, bye guys.

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