Disclaimer: The information found on this site is meant for educational and informational purposes only. Nothing on this site should be construed as a recommendation or solicitation to buy or sell derivatives or securities or to trade any particular strategy. Trading of derivatives or securities has large potential risk and you must be aware of and accept all the risks. Past performance of any trading system or methodology is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve performance results similar to those discussed on this website. Hypothetical or simulated performance results have certain limitations and do not represent actual trading.

Friday, April 15, 2011

QQQs Looking Vulnerable To Downside

- AAPL stock has seen lower lows and lower highs recently, setting up a pattern that rest of tech market could follow.  QQQs short-term (11-day) indicators are bearish, while mid-term (22-days) are still in neutral territory.

- Fair Volatility Estimate indicator's value for QQQs are at 17.98 in intraday trade 4/15.  IV Index mean of QQQ as of 4/14 close was at 17.12, and is probably lower today.  Should premiums come down Monday morning, I would think it would be a good time to play QQQs to the downside.  Perhaps, buying the May 57/53 put spread 1x2 for under 0.60 would be a good strategy.

- As for SPY, it is expiration day and the April 133/130 put spread bought for 0.30 is still in the money with SPY trading at 132.3 as of mid-day, but not by much.  Admittedly, however, recommending to buy VXX even under $29 on April 4, resulted in small loss.

- FVE indicator is at 16.3 as of 4/15 intraday, which remains significantly above IV Index mean of 14.5.

No comments:

Post a Comment