The entire month of March up to now (and for the most part February) have been non-trending. The last two weeks have been extremely poor in terms of trading opportunities. There is tons of chop and very high premium making options very difficult to trade. That will eventually change, but no one knows when and...
Really crappy trading opportunities last week. There is nothing we can do about that except stay patient and persevere our cash because from annoying trading ranges comes lots of great opportunities. In the end the most important part of our job as traders is to be patient when opportunities are not there. If you can’t...
Fantastic week. We stayed patient throughout the week and for the first time this year traded mostly using next weeks (OPEX) options. That was a great strategy because there was tons of chop and sucking out of premium on weeklies. The weeklies stayed with were huge winners. As of now I expect to see more...
It doesn’t get much more choppy and challenging than last week. One thing we can take notice of is that throughout all that crazy chop the open interest worked really well. For SPY the Wednesday high calls completely rejected price and then on Friday’s expiration the high puts held the first time and upon the...
SPY Monday, Wednesday & Quarter End Open Interest
Last week here I showed the three different open interests for SPY and detailed where things could end up based on the high calls or puts. Importantly, I described that the Friday expiration had the risk of delta hedging to the downside particularly at the end of the week (that phenomena leads to a swift […]
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