Open interest for VIX calls reaches highest level in 5 yearsParallels with 2011 spur hedging for extreme selloffIn Washington debt-ceiling brinkmanship is threatening to push the US into default. And on Wall Street, traders are gaming out what could be a rare Black Swan event.In the options market, hedges against a volatility breakout are seeing the most demand in five years. The cost to protect against a market selloff of around 10%, or one-standard deviation, is the highest in a year. Demand for tail-risk hedges that pay out in a fall as precipitous as 30%, or three deviations — a Black Swan event — has risen to levels last seen at the peak of March’s banking turmoil.The doomsday hedging is taking place on the market fringes, against a pervasive calm that’s pushed the widely used Cboe Vo
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Put bull spreads and application introduction
A bull spread consists of a buy leg and a sell leg of different strikes for the same expiration and same underlying contract.This strategy will pay off in a rising market, also known as a bull market, that is why it is referred to as a bull spread.Bull spreads can be constructed from either going long a call spread or going short a put spread.Put Bull SpreadsBull spreads can be constructed from selling a put spread. Selling a put allows you to collect a premium that you can keep if the underlying futures contract finishes at or above the strike price.A trader believes that the market will have a moderate rise before the options expire. If the underlying market was trading at 100, we can sell the 110-105 put spread. This would entail selling the 110 puts and buying the 105 puts which
Put bull spreads and application introduction
Wall Street Loads Up on Doom Hedges as Countdown to X-Day Begins
Wall Street Loads Up on Doom Hedges as Countdown to X-Day Begins
Top 10 Stocks for Trading Options in the Financial Report Season
The 2022 Q4 earnings season is drawing to a close amid expectations of a soft landing for the US economy. Profit margins for S&P 500 companies have fallen for the sixth straight quarter since peaking at 13% in 2021, and inflation is taking a real bite out of profits across industries.But by the end of February the S&P 500 was up 3%! The stock trend has been positive against pessimistic expectations. Tiger Community compiled a list of the top 10 stocks by options trading volume to see what kind of options trading characteristics they had during earnings season.1. $Tesla Motors(TSLA)$Tesla was arguably the hottest stock option trade of Q1 earnings season. Through February, Tesla shares closed at $205.71, up more than 73%
Top 10 Stocks for Trading Options in the Financial Report Season
【Options Strategy】Q2 Earnings season outlook for U.S. banks
Major U.S. banks, such as JPMorgan Chase, Wells Fargo, and Citigroup, will commence reporting their second-quarter results on July 14. Heading into the earnings season for the second quarter, banks are faced with low expectations as earnings have yet to make a significant recovery since the eruption of the regional banking crisis in March. The prevailing market sentiment towards bank stocks is excessively negative, but robust net interest income will likely surprise investors and offset the weakness in capital markets.US banking stocks have been among the best-performing sectors in the past week, indicating that investors may be positioning themselves for a positive earnings and outlook surprise from US banks. The future performance of US banks largely depends on whether the U.S. economy e
【Options Strategy】Q2 Earnings season outlook for U.S. banks
Hi, all. I’m back with my simulations trade.Today my trade is Short $NVIDIA Corp(NVDA)$’s Call with strike price of $133, expiring on this Friday.This trade means I think NVIDIA won’t rise to $133 this Friday.But the risk of short call is very risky. You can buy 100 shares of Nvidia. 100 shares and the short call will combine a Covered Call.Here is the process: find options and then click demo sell.Btw, last short call I share expired on last Friday. That’s the advantage of acting as the seller of options: profiting from the time decay.But remember, do covered calls.Welcome to follow my demo account trading and win tiger coins!
0DTE Battling With Long-Dated Options in Trendless Stock Market
A year after being shaken awake by an ultra-aggressive Federal Reserve, the stock market has gone back to sleep. Analysts trying to explain how it happened say dynamics in derivatives trading may be playing a role.While cooling inflation and better-than-feared earnings have helped promote calm in a market less vulnerable to valuation shocks after last year’s declines, fresh research is being published almost daily into how newly popular varieties of stock options act as forces for and against equity volatility.The latest to weigh in are strategists at JPMorgan Chase & Co., who argue that the interplay of zero-day stock options — fast-expiring contracts whose use exploded in the last year — and more conventional longer-dated ones is combining to dampen big and decisive moves in the broa
Implied volatility on Nvidia options expiring this week is as high as 124%
Artificial intelligence (AI) chip leader Nvidia $NVIDIA Corp(NVDA)$ will report second-quarter earnings after the U.S. stock market on Wednesday (23), and investors expect Nvidia's revenue in the quarter to beat expectations, and shares rose 5% on Monday.Wall Street expects Nvidia's revenue to grow about 110 percent to $12.5 billion in the current quarter, according to Refinitiv data. Nvidia has missed earnings estimates only once in the past two years. Citigroup analysts last week estimated Nvidia's revenue for the current quarter at only about $12 billion, but brokerages expect that to rise to $14 billion.After Nvidia estimated second-quarter revenue growth of more than 50 percent in May this year, its 12-month forward PE surged to more than 80
Implied volatility on Nvidia options expiring this week is as high as 124%
FOMC collision Quadruple Witching, this strike price will become the week's closing price threshold
Since the November FOMC meeting, market expectations for future rate hikes have changed slightly, as shown in the table below, from the day after the last FOMC meeting to the end of last week:Notable changes include:Modest expectations for a 25 basis point rate hike by January (32.5 per cent) have shifted to slightly narrower expectations for a rate cut (4.8 per cent).The rate cut was not fully priced in until July.Market expectations for a rate hike in March have shifted from 11.7 per cent to 49.4 per cent.Interest rate expectations fell 25 basis points in December to 4.334% from 4.543%. In other words, there will be one rate cut in 2024.The chart below shows the pace of the current quantitative tightening (QT) of the Fed's balance sheet. The latter table shows the SPX's reaction to recen
FOMC collision Quadruple Witching, this strike price will become the week's closing price threshold
[Options Strategy] Is Apple worth buying ahead of earnings?
Options show that the market has high expectations for AppleApple $Apple(AAPL)$ , which reports on Nov. 2, is expected to report revenue of $8.931 billion, up from $8.18 billion in the previous quarter, and earnings per share are expected to be $1.39. That's up from $1.26 in the previous quarter.Because Apple has met or exceeded revenue and earnings per share expectations in three of the last four quarters, coupled with the iPhone 15 release, the market's expectations for this earnings report are higher.While Apple shares are well off their highs for the year, the stock is still up more than 30% this year. The 2023 Apple price opened at $130.28 and has been steadily rising for most of the year, peaking at $198.23 on July 19. But it is currently tr
[Options Strategy] Is Apple worth buying ahead of earnings?
Hi, all. I’m back with my simulations trade.Today my trade is Short $NVIDIA Corp(NVDA)$’s Call with strike price of $1270, expiring on 7th June.This trade means I think NVIDIA won’t rise to $1270 on the day of stock split.But the risk of short call is very risky. You can try it in demo account.Here is the process: find options and then click demo sell.You are welcome to post your demo account trade in this topic and win tiger coins!!!Happy investing and have a good weekend~~~😺
SPX Options Vs. Spy Options – Strategic Advantages and Differences
SPX has one major strategic advantage over SPY…. SPX is a European Style Option vs SPY being an American Style Option. This means that SPX is cash-settled at the expiration date, so it cannot be exercised prior to expiration as SPY can. An early exercise can blow your trading plan for any position! If it wasn’t for this huge early expiration exercise risk with SPY, I would prefer SPY over SPX. This is because SPY, too, has a big strategic advantage over SPX in that SPY offers $1 wide strikes and also has a smaller contract value. The main advantages this pricing allows are: The ability to trade a smaller trading account Trade with more flexibility in position sizing Eas
[Earnings season options strategy] Winning Big with Tech Earnings: Insider Strategies Revealed
This week, tech stocks will start reporting their earnings and things don't look good. According to data compiled by FactSet, S&P 500 companies are expected to have a 6.8% drop in earnings from the same time last year - the biggest drop since the second quarter of 2020 when the pandemic first hit.As of April 4, e-mini futures contracts on the S&P 500, which bet on a decline in stocks, had grown to 321,459 contracts, the highest level since October 2011.Still, equity strategists often view futures market positioning as a counter-indicator, meaning that stocks often move in the opposite direction from what futures traders expect, especially when positioning is clearly concentrated in one direction or the other. Of course, the past is no guarantee of future performance.In terms of opt
[Earnings season options strategy] Winning Big with Tech Earnings: Insider Strategies Revealed
Join me to master the art of money-making in stock market!
The volume of stock options trading in India has reached nearly $40 billion, surpassing the United States and other countries worldwide.Speaking of options, an unavoidable issue for beginners is the high risk and complexity involved. ❗️Why do options, with so many drawbacks, still garner widespread acceptance?Even investment guru Buffett and politician Pelosi use options to boost their returns. 📊It's like a secret martial arts manual. Master it, you can ride the market, and seize money-making opportunities during earnings season. 💰The first step to embarking on the journey of making money is to join my demo account options trading camp and try to become a master of options!Tailored for beginners, the strategies are simple. 💼Use a demo account to test the trading strategies I share~~~ 📝Dail
Join me to master the art of money-making in stock market!
A $4.2 Trillion Options Event Looms for New Bull Market
The gravity-defying bull market is handing stock investors a fresh conundrum as an unusually big pile of options expires Friday: Chase gains via bullish derivatives or hedge with bearish bets?It’s a decision traders face every month, but the stakes are higher this time. About $4.2 trillion of contracts tied to stocks and indexes are scheduled to mature, according to an estimate by Rocky Fishman, founder of derivatives analytical firm Asym 500. That’s 20% more than a year ago.The event known as OpEx generally sees Wall Street managers either roll over existing positions or start new ones. This month it also happens to coincide with the quarterly expiration of index futures and the rebalancing of benchmark indexes including the S&P 500. The process is ominously dubbed triple witching and
A $4.2 Trillion Options Event Looms for New Bull Market
[Options Strategy] The options strategy with the highest win rate on Nvidia's earnings report
$NVIDIA Corp(NVDA)$ Will report earnings on November 21, last quarter's earnings performance was bright, not only a record high revenue, the third quarter earnings guidance is also higher than analysts' expectations, Nvidia expects the third quarter revenue will reach $16 billion.Bank of America analysts said enterprise-generated AI could play a key role in Nvidia's profitability ahead of its earnings report, suggesting investors may be underestimating "the potential growth in AI adoption by enterprise customers, which Nvidia can uniquely capitalize on through its best-in-class enterprise partnerships."Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund
[Options Strategy] The options strategy with the highest win rate on Nvidia's earnings report
[Earnings season options strategy outlook] Use the fluctuation rule of bank plate skillfully
First-quarter earnings season begins in earnest during the second full week of April, led by banking giants JPMorgan Chase, Wells Fargo and Citigroup. The market is closely watching the impact of the failure of Silicon Valley Bank and Signature Bank on U.S. financial institutions.Now that the banking crisis is over, the impact of the credit crunch remains to be seen. Data released on April 5 showed that the Fed's total assets fell by $73.6 billion month-on-month, a widening decline; Total lending at the Fed's discount window fell $18.45 billion from the previous month, contracting for the third straight week. Bank term financing plan (BTFP) balance rose $14.62 billion month on month, significantly lower than the outbreak of the crisis; Money market mutual fund assets rose $49.07 billion mo
[Earnings season options strategy outlook] Use the fluctuation rule of bank plate skillfully
Three Strategies to Profit Big from TSMC's Earnings Report!
As the world's largest dedicated semiconductor foundry, TSMC has been leading the technological development trends in the semiconductor industry. With its advanced 5nm and below process capabilities, TSMC has not only attracted orders from tech giants like Apple and Nvidia, but has also secured an important position in the emerging and hot AI chip market.Recently, against the backdrop of the continuously booming AI field, the global demand for advanced process chips has surged, bringing strong growth momentum to TSMC's performance. Investors are also bullish on the company's prospects, with TSMC's stock price already up 40% this year and its market capitalization more than doubling.Supported by multiple positive factors, TSMC's stock price continues to rise. With the arrival of the Q1 earn
Three Strategies to Profit Big from TSMC's Earnings Report!
[Options Strategy] Two tips apply to FOMC trading
The U.S. Federal Reserve kicks off a two-day policy meeting on Tuesday with officials widely expected to keep interest rates on hold for now, but also flagging in new economic projections whether they feel rates still need to rise further before the end of the year.A new policy statement and interest rate decision will be released at 2 p.m. EDT (1800 GMT) on Wednesday, with Fed Chair Jerome Powell scheduled to hold a press conference at 2:30 p.m. to elaborate.As of today, it appears that market expectations for this meeting are minimal. In fact, Fed funds futures point to a 0.8% probability, equating to no rate hike this week. The chances of a rate hike at the upcoming meeting are also slim, with the probability of a 25 basis point hike in November now at 32 percent and a December rate hik
[Options Strategy] Two tips apply to FOMC trading
【Options Strategy】Microsoft, Google, META, Amazon Q2 earnings preview
$Microsoft(MSFT)$ Microsoft is scheduled to report earnings on 25-Jul-2023. The last time Microsoft reported earnings on 25-Apr-202, the stock decreased by 7.2%.As you can see from the table below, MSFT shares have moved higher in the immediate aftermath of earnings 6 out of 12 previous reports. Based on the previous 12 earnings releases, MSFT is more likely to trade higher 1 day after earnings for an average gain of 0.6%. The absolute average return in the one week before earnings was ±3.1%. With an absolute average return of ±3.9% on earnings day.How Non-Directional Option Strategies Have Performed Around Earnings:MSFT last reported earnings on Apr 25, 2023 AMC.The options prices predicted a±4.2%post earnings move, compared to a+7.2%actual move.
【Options Strategy】Microsoft, Google, META, Amazon Q2 earnings preview
0DTE strategy exploration 1: How much can 0DTE options earn when the market crashes?
Zero-day expiration options (0 DTE) are options that expire on the day of the trade. The rising volume of zero-date options proves that there is a demand in financial markets for additional flexibility in day trading.The 0 DTE option strategy can be more flexible in a specific market situation. However, the cost and risk of 0 DTE options can be higher compared to weekly and monthly expiration options.Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund?0 DTE Options: Select strategy and strike priceThe implied volatility of 0 DTE options is on average higher than the implied volatility of regular monthly options. This means that, all else being equal, buyers of 0 DTE options pay an extra prem
0DTE strategy exploration 1: How much can 0DTE options earn when the market crashes?
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