High High Volatility!: VIX > 20, We have been range bound for two weeks between 2560 and 2660 on the top side. However, intraday volatility has been extreme. Last time I saw this was in 2008/9, and the market resolved to the downside. Given the economic strengths, I am not predicting Armageddon. Perhaps a deep correction is in order to February lows. We are always just one “tweet” away from a selloff. I have one trader in my circle who is going long for another 3 weeks. I have another who has a bearish sentiment for the rest of this year or perhaps the next 6 months. The /VX Futures are still in backwardation so expect continued choppy markets ahead. Keep your hedges on please. Risk Twist Spreads for the Quarterly Hedge, Dr Ted Nukes SPX Put Ratio for a 3 week hedge and 2v4 Week RUT calendar for 6-10 day hedge, and SPY, IWM, QQQ Long Puts for a few days hedge.
Cherry Picks Newsletters:
Tasty Trade Researchers publish this awesome weekly newsletter every Tuesday. Dr. Data documents a “wheel of fortune” strategy in OIH. Here you sell puts until assigned, then sell calls over stock to get rid of the shares at higher prices. Check out the link below. If this blog sounds like gibberish, watch "Where do I start 101" free education series on Tastytrade.
https://s3.amazonaws.com/cherry-picks-s3-bucket-newsletter/live/18_04_10_tastytrade_Research.pdf?mc_cid=cc0f6943b3&mc_eid=e9e24bad07
https://www.tastytrade.com/tt/shows/wdis-options-101/episodes/brittanys-story-01-03-2017
E-currencies vs US Dollar: Bitcoin is still in a bear market retesting 2018 lows. The other crypto Litecoin, Ethereum and Steem are following suit. This is a trader’s environment, where you can buy or sell a small positions and take profits quickly. Are you mining cryptos in private wallets yet? US Dollar is still range bound between 88.25 and 91.
https://www.coinbase.com/charts?locale=en-US
TRADE Log: VIX > 21 High High Volatility Trades are back
- Long GOLD, BITCOIN
- Jade Lizards, Broken Wing Butterfly, Dynamic Iron Condors
- If China / US Tariff was is over, then long Auto (e.g. TSLA), Biotech, Industrials, China and Int’l ETF and Stocks should work. These sectors along with tech were oversold, so Jade Lizards may be perfect.
- American Airlines (AAL) - Alex Weisenbach Trade
Calendarized Call Ratio Spread ( -8 55.5 Call for .27 May 11 vs 5 55 Calls for .37 May 18)
Videos:
Doc Severson Theotrade:Fade The Early Move - Has the Pattern Changed?
https://www.tastytrade.com/tt/learn/jade-lizard
https://www.tastytrade.com/tt/shows/trade-managers/episodes/jade-lizard-management-02-07-2018