"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 13 hours The Trillion Dollar Space Race
  • 2 days The FANG Stock Investors Should Avoid
  • 3 days Is This The Death Of The iPhone X?
  • 3 days Is London Still The Financial Capital Of The World?
  • 3 days Is Gold Staging A Comeback?
  • 3 days The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 3 days Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 3 days Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 3 days Is Silver Poised For A Massive Break Out?
  • 4 days Meet The Hedge Fund Billionaires Club
  • 4 days The Next Housing Crisis Could Be Right Around The Corner
  • 4 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 4 days Africa’s Fastest Growing Economy
  • 4 days The Blockchain Boom Hits The Utilities Sector
  • 4 days Why Smart Money Is Selling Off Right Before The Bell
  • 4 days Tech Giants Rally Ahead Of Earnings Reports
  • 5 days Global Debt Hits 225% Of GDP
  • 5 days The World’s First Trillionaire Will Be A Space Miner
  • 5 days How Student Debt Could Cause The Next Real Estate Crisis
  • 5 days This $550 Billion Industry Is Betting On Bitcoin
Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

More Info

Options Expiration

6/23/2014 5:51:21 AM

Good morning traders,

Big picture, if you've traded long enough you know that options expiration tends to play into market timing considerations. Here are a few things to consider:

On the markets, absent the affect of options expiration, you have options traders getting a bit greedy:

Equity Put/Call ratio Chart

And on one measure, the internals of the market are turning lower and hitting the all important zero level!

NASDAQ McClellan Oscillator Chart

Looking at a couple of our commodity services, here's what's happening in Gold:

Gold Put/Call Ratio Chart

As contrarian traders, meaning when the crowd leans to the left, we tend to lean to the right, this reading above is bearish. Sure there was the point last july when the call buying did lead a significant move higher - but it was also a top. I expect the same here. We'll look to add some gold puts at some point...

And oil?

Oil Volatility Spread Chart

This potential for oil to rally means we'll be further rewarded with our call options. This doesn't always result in an advance, but the potential is there...



Back to homepage

Leave a comment

Leave a comment