Options Flow Recap Oct 11

Macro / Thematic

EEM – 76,000 of the October 36 / 39 put spread was sold at $1.11. The put spread was sold to close and likely closes a position opened approximately one month ago for a $0.55 debit.

SPY – 30,000 of the January 110 puts were bought for $4.44. 40,000 of the January 105 puts were bought for $3.29. 20,000 of the January 85 puts were bought for $0.92. 50,000 of the January 100 puts were sold at $2.43 and 40,000 of the January 90 puts were sold at $1.28. The trade was done as a package.

VIX – 18,000 of the January 25 puts were bought for $1.075.

XLF – 17,000 of the January 12 puts were sold at $0.98.

Morning Note

August 16, 2011

US Equity futures are all trading lower despite a 3 day winning streak following a negative opening across Europe after Germany reported much weaker than expected GDP figures (+2.8% y/y vs consensus +3.2%). In addition to earnings, economic data, including July Housing starts followed by July Industrial Production before the opening bell.

Options Flow Recap Aug 11th

Macro / Thematic

GLD SPDR Gold Trust - 20,000 of the September 158 calls were sold to buy the December 195 / 205 call stupid collecting $7.15 on the leg legs. The December  call stupid was bought to open.

SPY SPDR S&P 500 ETF - 100,000 of the September 124 calls were bought for $0.24 early in the day's session. The calls were bought to open.

Options Flow Recap Aug 10th

Macro / Thematic

EEM iShares MSCI Emerging Markets Indx – 76,000 of the September 39 / 36 put spread was bought for $0.87. The trade was tied to stock at $39.50.

SPY SPDR S&P 500 ETF: seller 70,000 Sep 112 quarterly puts at 5.84, selling 55,000 Sep 115 quarterly puts at 6.96

SPY: buyer 22,000 Aug 108 puts for 2.05

SPY: seller 15,000 Aug 109 puts at 1.95

Options Flow Recap Aug 9th

Macro / Thematic

FXI – 25,000 of the January 36 puts were bought for $3.10. The trade was tied too 1.12 million shares at $36.71.

IYR – 50,000 of the December 50 puts were sold at $3.30.

SPY – 30,000 of the August 109 / 116 put spread were sold at $2.67 following the release of the FOMC statement.

XRT – 28,500 of the September 58 calls were bought for $1.50.

Morning Note

August 9, 2011

US futures continue to be volatile, with Dow futures oscillating between a loss of (318) points and a gain of 324 points.

Today's main focus will be the release of the Fed statement from today's FOMC meeting, scheduled for 14:15 ET.

Treasury Auction of 3-yr notes at 13:00 ET

Greece sells €812.5M 6M T-Bills, average yield 4.85% vs prior auction 4.90%, bid to cover 3.06 vs prior 2.88

New Options Exchange in.... Iran

this article originally appeared here: 

Tehran bourse moves towards options launch

Iran’s bourse plans to expand its fledgling derivatives market by launching options in the coming months despite the cold shoulder traders have given to single stock futures.

Morning Note

*I'll update this post as I get more info up to 10 minutes before the open.

July 22, 2011

Equity futures are trading above fair value, following Europe higher after Eurozone leaders agreed a further €159B aid package to Greece to which private lenders will contribute. Three of the four options offered to lenders to swap or relend existing debts would extend Greece's repayment terms by 30 years, while the fourth would do so by 15 years. All options offer a much lower interest rate thanGreece's current 15%-25% cost of borrowing.

Skills For Gaining Control

 This is a follow up post to "Getting to Know Your Intersections"


Skills for Gaining Control


When you're trading with a green light consistantly keep doing what you're doing or think about sizing up or trading more markets.  But I'm not writing about that now.  Today I want to focus on what to do when you're trading with a yellow light or even worse a red light.   When you've lost control or are about to lose control its imparitive to your wealth and mental capital you get back to your green light.  The following ideas I've taken from athletes like Michael Jordan, coaches like Phil Jackson, various articles I've read over the years on performing at a high level, and various traders I respect. 

US derivatives watchdog gets more firepower

This is a big deal.  Recklessness is an interesting word they choose to use. 


This article appeared via FT here:  http://www.ft.com/cms/s/0/e35eccb6-a8b4-11e0-b877-00144feabdc0.html#ixzz1RS6D4mUw

"The main US derivatives regulator has approved rules boosting the agency’s legal firepower against market manipulation after winning only one case at trial in its 36-year history.

The rules, adopted over the objections of hedge funds and the futures industry, will allow the Commodity Futures Trading Commission lawyers to cite recklessness as a reason to sue traders for manipulation. Previous rules required proof that traders had distorted prices.