Derived from the amount of OPEN INTERESTS multiplied with 100 shares per contract times mid price gives us a good estimate what money is at stake and where the Market Maker will make the most money.
Read MoreAn update on IWM Call Spread. IWM reaches the frontline of defense threatening a breakthrough the all time high it reached in the beginning of March 2021 where it topped out at 234.53. Now what? Will it retread or advance?
Read MoreI was waiting for my two candles since Monday but the underlaying took a small retraction. Today on Thursday we saw a bullish engulfing. It was rejected at the 229-230 Resistance level. An area with over 100,000 Call and 50,000 Put options. If this level is broken the MM will
Read MoreGDP further deteriorating
Read MoreMake sure that you understand all three previous blogs. They are fundamentally important to this trading tactics. bear-call-credit-spread-histogram-3_20 Additions I introduced the True Average and the Average True Range, ATR, into the equation. To calculate the True Range is easy, please look it up on the web. For EVERYTHING you
Read MoreWith an estimated GDP growth of only 0.5% for Q3 21 it tells me that the Bull Market is coming to an end. My Flags going on “Stay Flat” Yellow!! This would be a catastrophic drop of -3.7% from Q2. #Stagflation #GDP #Options Maybe it is time to Buy some
Read MoreWith the collection of data from the Atlanta FEDs we see a rapidly deteriorating US economy. The GDP forecast dropped from 6.1 annualized GDP growth to 1.3!! This is a major concerning development. If we take the formula of GDP = Money Supply x Velocity of Circulation we receive a
Read MoreThe Federal Reserve raised interest rates four times this year (2018). Earlier this month, December 19th, at the Fed’s last meeting of 2018, Chairman Jerome Powell signaled that the central bank’s board of governors would likely issue fewer rate hikes next year, but investors were not appeased and the Dow
Read MoreHovering around the 38.50 and 37.50 level for the past 4 weeks AMC seem to break below the triangle and the 50% Fibonacci line. The trading volume is also dramatically reduced it reached 29% of the current average trading volume. This is about 16% of the trading volume in August,
Read MoreAfter the SPY dropped by 5% all commentators are in a tantrum. This will get worse. Why? The Feds keep pumping printed money into circulation, which immensely inflates the currency. We seem to be in the initial step of the “Blow Off Phase” of a trading cycle. Or the end
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