Ok, so, I found a "trick" I want to share with all of you. It's not really a trick, it's just something I never knew before and find it incredibly helpful. The SPX has options. If you want to sell a naked option on the SPX, just one, you've got to have an account over $45,000. That's about how much they will hold for just one naked option. Two if you do a straddle or a strangle. The E Mini S&P futures /es, also has options. And while the /es isn't exactly the same price as the SPX, they track pretty darn close. The options on the /es are half the amount of options on the SPX. So, to collect the same amount of premium if you sell options, you have to sell 2 /es for every 1 SPX. However, theyll only hold $9,000 for 2 /es options. Therefore, you get 5 times more of your money. That's a pretty helpful little discovery. There are some differences too. SPX will settle to cash, for example. The /es will settle to futures contracts. I hope this helps!
Exactly ...... and they're not elected f***'ing officials. It's craziness that it has become acceptable.
My political theory of the markets. We have an election in November. Dems are the party in power. Currently Dems equate with status quo. Trump is a turn over the Apple cart guy. Therefore, anything negative helps Trump and hurts Hillary. This means markets must be propped up. Down markets and negative market news stories will help Trump. More realistic markets will emerge after the election.
Stock Market Update 2016-10-07 14:00:00 Briefing.com33 minutes ago [BRIEFING.COM] The S&P 500 (-0.3%) has narrowed its loss in recent action as long-term interest rates halt their advance. Nine sectors trade in negative territory with materials (-1.6%) and industrials (-1.1%) each trading well behind the broader market. Conversely, utilities (+0.4%) and financials (UNCH) sport the only gains. The commodity-sensitive energy sector (-0.1%) trades modestly lower as crude oil narrows its loss. The energy component rebounded off the $49.50/bbl price level shortly before the Baker Hughes Rig Count was reported. That report indicated that total U.S. rigs rose by 2 to 524 after rising by 11 rigs in the prior week. WTI crude currently trades lower by 1.3% ($49.81/bbl; -$0.62). Dow component Chevron (CVX 103.04, +0.86) has erased a modest weekly loss and now trades higher by 0.1% for the week. The broader energy sector has gained 0.3% over that period. Treasuries trade on a mixed note with the long end of the curve rebounding. The yield on the 2-yr note has slipped two basis points (0.84%) while the yield on the benchmark 10-yr note has declined one basis point (1.73%).
sounds about right @Baggi based on history of election years, we almost always see a nice eoy run after the election- http://www.stockaholics.net/threads/the-bull-thread.105/#post-27480 however, i'm thinking this time will be different ... we'll see!
Notice what happened in 2000 and in 2008 when the status quo was overturned? If this chart is an accurate indication of future prospects, then if Trump wins we can expect a large decline in November.
oops ... that somehow came out horribly wrong lol ... corrected ... i meant to say that this time will be different in that we prob will see a post-election selloff if the status quo as you say were to be overturned ... 2000 and 2008 were on the 8th year of an election cycle where the status quo was overturned ... which means that we just follow the same pattern here once again if trump wins
ding ding ... and that is a wrap to the trading week thx to all who posted to the weekly thread this week ... much appreciated have a nice weekend fellas
