Where is our friend S2007S? I hope he got it right. I think he is smart and changed his mind real quick
Did you check how much are the straddles now? I did not have a chance to do it yet. You may want to eye ball what would be the strike that will win on Friday, using your highly developed intuition, and very sharp mind, and all the cool signature with green glasses if you think it will make cash.
This one is not secret formula. It is due to few things (first 2 I read and they make sense, the others are my theories): 1. The hedging of new short puts (the previous post got it). 2. Professional traders do not hold risky assets, and except in a raging bull market they consider a long position as a riskier assets. Therefore stocks they get assigned over the weekend are sold the following week. 3. A short position is better for margining reasons than a long position, so there can be incentive to clip them/remove them and even replace them by shorts. 4. If interest rates are positive, longs are desired less due to cost of carry, and shorts are desired even more because they earn interest. So selling long and shorting is an action that earns TWICE the interest rate. Points 3 and 4 are mine. Never stated before. What do you think of them? Are they worth the mention in future formal writing.
thank you for sharing your knowledge! my intuition fails me about the straddles. i will watch them through the rest of the week. maybe somebody has ideas where the market is signaling it is going to by expr. if i had to wild-guess i would say that SPY where it is now is reasonably priced (we were oversold and we bounced up).
I am watching the bonds. There were at 125'18 few moments ago. They did not break 125'17 yet, which important for confirmation purposes. I covered my short bonds, and will wait to see if they will break 125'17. If bonds do not go down, then this up leg in stocks is limited. 126'08 was the precise top in bonds. When "experts" brag about their positions, one may want to watch out. I give you the stamps as a gift, and you may want to get bone to send you more than just bones for the contest. I know you like green healthy food. Bonne Appetit And thanks for the straddle numbers!
somebody= Shortie? PS: Asking you for those numbers was also an exercise to draw your attention to potential trades.
Did you notice that QQQQ fell around 1% after the close. Maybe some earnings. So Thursday may lead to a close of the recent gap, and then a boring Friday?