MYMWFY

March 5, 2023 There will be more trading opportunities this week as deltas (and prices) spike on Tuesday, February 7.  Fed chair Jerome Powell will speak on Tuesday, delivering the semi-annual monetary policy report.  On Friday, there will be another jobs report. March 4, 2023 The market was up 1.9% this week (1.6% on Friday) because 10-year Treasury note's yield dropped below 4% .  Yay! February 26, 2023  The market was hammered this week, with SPY dropping from 403 to 396.  This is on new that the Fed was still intent on increasing interest rates and that inflation increased from 5.3% in December to 5.4% in January .  This is not surprising considering that, on the street level, some consumer stables like soda and ketchup are finding the people largely brush off price hikes. In other news, Google's stock continues to fall.  On February 2, Google opened at $106.  It closed on $89, a 16% drop, in less than 4 weeks.  This is in the wake of ...

 GOOG PUT Project Can we really make money selling puts?  Let's try! Date Sym $ Act Stk Exp NetP CumP ROI% Wks Note 2023-03-17 GOOG 101.80 Roll PUT 92 2023-03-24 42 (1) 372 4.0 5 Google closed at 101.62. Raised strike. 2023-03-10 GOOG 92.18 Roll PUT 91 2023-03-17 117 (7) 330 3.6 4 Google closed at 91.01. 2023-03-03 GOOG 93.37 Roll PUT 91 2023-03-10 56 (1) 213 2.3 3 2023-02-24 GOOG 89.35 Roll PUT 91 2023-03-03 65 (189) 157 1.7 2 ...

Jr Trader:  Lumpiness in Options Pricing February 13, 2023 I noticed something odd in the SPY options pricing last Friday.  There seemed to be some big price discontinuities in the prices.  Is this normal?  Can we take advantage of it? Before the weekend, I was looking at SPY CALL prices for Monday, February 13, 3 days from now.  (Note, at close, the price of SPY was 408.4.) Table:  SPY prices for week of Monday, February 13 as of Friday, February 10. Symbol Strike Expiration Price Delta SPY 410 Mon., Feb. 13 0.96 0.34 SPY 410 Tue., Feb. 14 3.04 0.42 SPY 410 Wed., Feb. 15 3.44 0.43 SPY 410 Thu, Feb. 16 3.88 0.45 Why does delta jump from Monday, February 13 to Tuesday, February 14 from 0.34 to 0.42 (over 25% more)?  We typically see increases in the 2% range.  And, correspondingly, the prices significantly change - they more than triple from 0.96 to 3.04. Is this some kind of weekend effect / Monday effect - do we typically have low-delta Mondays, ...

Risk Parity, How to Invest in All Market Environments Alex Shahidi Wiley, 2021 Hardcover ‏ : ‎ 208 pages ISBN-10 ‏ : ‎ 1119812569 Risk Parity: How to Invest in All Market Environments describes Alex Shahidi’s (of Evoke Advisors) approach to constructing a portfolio that balances risk versus reward.  Risk Parity sees the financial  world in two dimensions, growth and inflation, where either can be either increasing or decreasing.  To  handle all four environments (e.g., rising growth with rising inflation, rising growth with falling inflation),   he advises investment in four asset classes due to their outperformance in the different environments: Equities Treasuries TIPS (Treasury Inflation Protected Securities) Commodities Because asset classes like Treasuries tend to have lower risk and reward, Shahidi recommends the use of leverage to create equity-like returns with the commensurate risk. Finally, Shahidi recommends rebalancing regularly to ensure that ...

When is money from a sold position available for trading in Fidelity and how does that compare to money availability for an assigned put?  The question about money availability is important for traders who want to take advantage of every possible trading day.  It turns out that both follow the T+2 timeline .  The T+2 timeline states that money from a stock sale is available on the second business day after the transaction. For put options that are assigned, there’s the added step of declaring an put option as being assigned before the sale takes place.  Does this slow down the sale process?  It appears not. While Fidelity reports the assignment and sale the day after the put option expires, it backdates the sale transaction to the date of expiration. For example, if a SPY put option expired on January 26, 2023, its assignment would be logged the next business day (January 27, 2023).  However, the transaction is backdated to the date of the option expiration...