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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
March 2020: currently short ES and NQ futures as a portfolio hedge
** 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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