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Market Breadth Analysis
Get a Price Discount & Reduce Risk -- by combining options and selling some premium.
Options Income Trades - Short Strangles on SPX (/ES futures) when volatility spikes; Lately have been selling premium in the Bond Futures (ZB), Gold (GC) & Oil (CL) because they're less correlated to stocks.
Market Breadth: McClellan Oscillator, Summation Index; $VIX , Put-Call Ratio, Advance-Decline, $TICK, $TRIN.
** FUTURES -- selling premium (short options for income) in Bonds ZB: and Crude Oil CL; some tail-risk hedges are in place.
PORTFOLIO HEDGE: long QQQ March 168 Puts @ $4.40
long:JD, KWEB, NTES, EEM, ITA, NFLX, AAPL, BIDU, ALKS, GILD, BX, KBH, /CL - crude oil
The first two charts are the Notes/Bond trade.
Notes are 10 year government Bonds (ETF: IEF); (Futures: ZN)
Bonds are 30 year government Bonds (ETF: TLT) (Futures: ZB)
NOTES and BONDS are highly correlated. (they trade together over 90% of the time)
When the pair diverge, trade the pair for a reversion to the mean (back to neutral)
*-Dec 17th - Long NOB spd: LONG /ZN; SHORT /ZB; 12/18 Closed NOB spread
-Nov 16th pre-market: LONG NOB Spread: sold /ZB, bought /ZN
Nov 29th: EXITED
Nov 8th: Bonds (blue line) were much higher than Notes.
-Sold short the Bonds; Bought the Notes
sold /ZB, bought /ZN
this chart plots the Notes - the Bonds on one chart.
Long the Spread : buy notes, sell bonds
Short the spread: sell notes, buy bonds
12/17: Long; 12/18 Closed
November 8th: I went long the spread
Nov 10th: exited
The Futures trade overnight, so they're easier to trade. (no gaps)
The Futures have a very low capital requirement, and are taxed favorably (60% long term; 40% short term)
2 Hour chart of the Nasdaq's VIX. Implied Volatility of 30 DAY options on the $NDX
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.
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