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Market Breadth Analysis
Get a Price Discount & Reduce Risk -- by combining options and selling some premium.
Options Income Trades - Sell option premium for Income:
Selling premium in futures options.
-- Market Breadth Charts: McClellan Oscillator, Summation Index; $VIX , Put-Call Ratio, Advance-Decline, $TICK, $TRIN.
** FUTURES -- I like to hedge and sell premium (short options for income) in the futures
---(I like to scale into hedges - and blend different types... )
Feb 07 - 08, 2019
1) BTO /VXH19 @ 17.00 (bought VIX futures)
2) Bought VIX March19th 15/20 Call spread @ 1.70 (illed)
3) S&P500 futures /ES options
April (Wk3) expiration:
sold a 2800/2850 call spread;
bought a 2700/2600 put spread
net debit: $9.50 filled
SPY hedge: BTO Mar 270 P @ 1.99 dbt
/ES hedge: BTO Mar 2700P @ 17.75 dbt
2/19: PYPL: bto Mar 92C @ 4.45; BTO April 90-100 Call Spd @ 5.28 ;
BTO C April 60-67.5 Call Spd @ 4.38; BTO QCOM March 50-54 call spd @ 2.08;
SQ - pre-earnings trade: BTO Mar 75C @ 5.42 (earnings are on the 27th - exit before earnings);
WYNN - BTO March 120-133 Call Spd @ 7.95;
BTO Mar 75C @ 5.42
2/15: IBB - BTO Mar 108C @ 4.9
2/14: MSFT - BTO May 100 C @ 9.5;
TWLO - BTO July 105-110 call spd @ 2.36 & June 100-110 @ 4.93
2/13: TWLO - BTO Mar & Apr 90-110 call spds @ 13.65 & 12.65
--SHOP - STO July 170/210 strangle @ 23.50 g.t.c. (naked short strangle)
BTO July 160-190 Call Spd; and STO 150 Put @ 6.35 dbt
BTO July 160-190 call spd @ 14.90
2/12: ANET - BTO June 200-250 Call Spd @ 29.50; NTNX - BTO Jan 45/55 call spd @ 5.10
** HEDGE Timing Chart**
Slow Stocastic (60 period) : Here is a GREAT SIGNAL to L O W E R .. R I S K (or add risk) to a portfolio. **
Measures market breadth: Watch Zero Line for hedges.
Hedge portfolio when Summation Index is below Zero
'The Summation Index is a breadth indicator based on Net Advances (advancing issues less declining issues). The Summation Index is simply a running total of the McClellan Oscillator values. Even though it is called a Summation Index, the indicator is really an oscillator that fluctuates above and below the zero line.'
S&P 500 VIX, Nasdaq 100 VIX, Russell 2000 VIX, Crude Oil futures VIX
This can be a leading indicator on a short term basis.
This chart really helps for DayTrading.
When Put Call Ratio is HIGH - Buy Stocks
When Put Call Ratio is LOW - Hedge or Sell stock
*keep an eye on the 10 day Moving Average
2016-2017: Selling Option Premium in Futures: Gold (/GC); Bonds (/ZB); Crude Oil (/CL); S&P's (/ES).
Selling Strangles, Puts & Calls -- Managing the Risk with Delta Hedging.
April12, 2017 - Volatility has been spiking recently. Safe-haven assets; Gold, Bonds, Yen are rallying.
$VIX measures the implied volatility of options on the SPX index
$VVIX (this chart) measures the implied volatility of options on the VIX index - (these are priced off /VX futures).
When this is high portfolio managers are buying portfolio protection using VIX Calls.
11/18: When Volatility is LOW, I'm buying SPX Calendar Spreads (Delta .40, short 30 day/long 60 day)
exit @ +10%.
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