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Mr. October

The real Mr. October may not be Reggie Jackson. For the past five years now, the VIX currently at 26.84, has spiked 50% from its lows during the month of October. This past Friday, volatility as expected "popped" as weak economic data surfaced. On "The Halftime Report" I had a chance to explain this phenomenon in more detail.

I also had an opportunity to discuss buying protection against a market correction. Playing volatility will give an investor this kind of protection. During my interview with Melissa Lee on "Options Action", you will hear how to exactly to play VIX options. Another example of buying protection that I go on to discuss is buying a zero cost collar against a long position of a stock. These are just a few strategies to think about to prepare for a possible pull back in the market.

Fast Money Halftime Report Oct2
Option Actions on Fast Money Oct2

Tremendous Demand leads to Calmer Waters

With a series of interviews on CNBC, Dan Deming was a busy man explaining the current market environment these past few weeks. Going into further detail, Dan explains why the market is in calmer waters, why the vix could be under further pressure, and when we could start to see some pullbacks. During "Chalk Talk" on First Business, Dan discusses Semi-conductors and the SMH.


CNBC interview 9-22-09
http://www.cnbc.com/id/15840232?video=1271801926&play=1

CNBC interview 9-22-09
http://www.cnbc.com/id/15840232?video=1273576312&play=1

CNBC interview 9-14-09
http://www.cnbc.com/id/15840232?video=1263192332&play=1

First Business interview 9-22-09
http://www.firstbusinessx.com/index.php?option=com_content&task=view&id=1666&Itemid=76

UPS vs. FED EX

If we are going to recover from this recession, we should see gains in the transportation sector. On Friday we saw a bigger than expected international transport sales which drove Fed Ex and UPS stock up. What option traders are now predicting with Fed Ex is a range from 75 to 80 in the coming months. If you start to see a pull back in the stock to the lower range, it would be a good idea to jump in. However, when comparing Fed Ex to UPS, I see stronger fundamentals in UPS as it is a Warren Buffet favorite. Hear my insights in greater detail on last Friday's "Halftime Report".

http://www.cnbc.com/id/15840232?video=1250586765&play=1

Meeting Expectations

For the past month now, I've been stating how traders who have been trading VIX futures have been expecting to see a rise in volatility as we head into fall months. Seeing this expected pullback in the market over the past week has helped prove this expectation. With this, I can expect the market now to turn a bit sideways as I believe we will be in trading zone on the S&P from the low end of 980 to about 1,020. Click below to hear my take on the VIX and my market forecast in more detail as I had a chance to explain it all on CNBC on Tuesday.

http://www.cnbc.com/id/15840232?video=1236895979&play=1

Capitalizing on Healthcare

The hot topic in the political world has been health care. As the Obama administration struggles to showcase its health care plan, it's important to realize the implications on health care companies. In looking at United Health Care along with other big health insurance companies, they are clearly a major player. With volatility on the rise in this sector what this all means is that one can expect to profit from the unknowns of the health care debate.
http://www.cnbc.com/id/32465248/site/14081545

Last week, on the "Half-time" Report, I had a chance to discuss retail stocks such as target. I have seen a lot of bullish activity with call buying for September. If the market can not only test its highs but also set new ones, it would be a great sign for stocks such as Target. However, if we do not set new highs, this could put a lot of pressure on them. This is a classic example of why purchasing a call rather than owning the stock outright is better by limiting your exposure.…

A market of Uncertainty

As we saw some of those pullbacks in the market on Monday, Dan Deming was on CNBC to give some perspective. As he points out, we have seen some premiums in back month VIX futures which are trading higher than the cash. Also since Monday's movement in the market was rather drastic, the vix has also moved in a drastic way up nearly 15 percent. Click below to hear the interview as well as some of Dan's quotes from an article CNBC's "Market Insider".
http://www.cnbc.com/id/15840232?play=1&video=1216990665
http://www.cnbc.com/id/32453083/site/14081545

Summer Pullbacks

Just as the summer is soon to be coming to a close, last Friday the sentiment was that summer rally is also soon coming to an end. On my latest appearance on the "Halftime Report", I discuss how Vix levels remain high compared to the actual daily moves of the market. In the latest consumer data, I was a bit surprised that the market had taken a move to the downside. As the S&P dipped below 1,000, it may mean that it's a good time to go long again.

As far as Financials, we are seeing a lot of put protection in Wells Fargo September and October puts. I think this amount of protection will allow investors to be confident when buying into pullbacks.

In the retail sector, with Target currently at 42.03 set to report on Tuesday, I see bullishness to the upside, with options behaving in line to what happened prior to Walmart's report. Here my thoughts in greater detail by clicking below.

http://www.cnbc.com/id/32419198/site/14081545

All Eyes Point to Higher Market Levels

Seeing the market rally continue can mean only good things for the economy. We are seeing a continued ease of pressure of volatility which has taken the fear out of this market. I'm also seeing more bearish protective trading in the option pits. Last Friday, With these positive signs, as long as investors are protected we should see this rally continue. Hear more as I had a chance to go in greater detail on last Friday's "Halftime Report"
http://www.cnbc.com/id/32330971/site/14081545

1050 and Counting

The current summer rally is appearing like it may not end just yet. On Monday's "Halftime Report" I had another opportunity to discuss the latest VIX analysis. As I state on the show, last Friday, we saw a big bullish play on the August 1000 calls on the S&P. With the VIX remaining elevated, we are seeing investors continue to buy options as means of protection against a downside move, limiting their downside risk. What this all means is that we should see some steady gains until the 1050 mark. In other topics on the show, I remained strong in my Ford play as I see some upside potential in the stock.

Over Paying for Protection

On Friday's "Halftime Report" I not only continued on with my lecture on over paying for market protection, but also had a chance to discuss other topics such as the auto industry. On topic was Ford Motor Co. I believe there is a direct correlation to the economy and auto sales. Once the economy does recover, stocks such as Ford will recover with it.

http://www.cnbc.com/id/32237228/site/14081545

Heading towards 1,000

This past week we saw some continued gains to the summer rally. I had a chance to discuss my latest thoughts on the market on CNBC's "The Halftime Report" last Thursday and Friday. On topic was the rally. When we see a rally like this it's always important to have your eyes on the VIX. The VIX currently is priced at 25, however September and October futures are priced around 30. What all of this may mean is that investors are seeking some protection. As I discuss on the show on the both days, I believe there has been some over buying for this protection. This may be why the market is continuing to rally and not pulling back just yet. In other topics, I discuss why Disney stock may not be going past 30, but at the same time may be a good dividend stocks. And, since the VIX is dropping the fear out of this market isn't what it used to be which makes investing in stocks and options your best option in compared to treasuries as we head towards 1,000 on the S&P.�…

Buying Cautiously

Last week we all witnessed some positive gains in the market. On Thursday during the "Halftime Report" on CNBC, I had a chance to give my opinions on various topics, including financials and the future outlook. Some things to think about is that we have seen more buyers gone into this market as well as subsided levels in volatility. This may mean a steady incline in the next coming week. I predict 9,042 in the DOW by the end of the week. That being said, there a few option trades which will help in some protection against pullbacks. Click the link below to hear my strategy in greater detail.

http://www.cnbc.com/id/31945283/site/14081545

Tech and Protection

Looking ahead into the next earnings report, we have seen some mixed messages in the market. On the long side, the sector to think about is clearly tech. I like Tech right now over the other sectors because they have a more heavy cash balance which will help them continue to innovate and consolidate. Some names to think about are MSFT and INTC, being a semiconductor lead rally. AMZN and AAPL are some good ones too. Mixed in with all of this market data is also a rise in volatility levels in the broader market which has the potential for elevated levels of movement over the next 30 days, so you may want to buy put protection in the S&P 500 against a portfolio of tech names.

Quaduple Expiration

We encountered a quadruple expiration this past Friday which is a pretty rare occurrence. However, something that isn't so rare these days are Dan Deming's appearances on CNBC's "Market Buzz". Last week on the show, Dan had a chance to discuss many topics. One being whether or not the market would hold this bottom range, his opinions of the Vix, and where he thinks the market will be this summer.
http://www.cnbc.com/id/15840232?video=1154471044&play=1

Dan continued on with his media campaign with an appearance on CBOTV's "In the Money with Angela Miles". On topic was of course the VIX as he discusses intraday moves in the market and whether or not the Vix is under pressure.
http://www.cboe.com/TradTool/webcast.aspx?channel=885&movieid=46798

Da Bears

The past three months the market has provided a nice rally. However, recently, this rally has seemed at best to slow down. It is clear "Da Bears" are starting to take over. That being said, there are still opportunities playing options. One example is in the tech sector. As the panel discusses on "Options Action" the nasdaq has had a great run. So far this year it is up 16% and we have seen a lot of put buying recently in this sector. Hear this strategy as well as the rest of the panel's.
http://www.cnbc.com/id/15840232?video=1158834143&play=1
http://www.cnbc.com/id/15840232?video=1158834185&play=1
http://www.cnbc.com/id/15840232?video=1158849073&play=1
http://www.cnbc.com/id/15840232?video=1158849354&play=1

Heavy Metal

This week as we have already seen some pull backs in the market as the DOW was down about two percent. On the lastest "Option Action" hear the panel discuss their latest option strategies as they analyze why markets are moving sideways, what to make of a declining technological sector, and the heavy commodity markets.
http://www.cnbc.com/id/15840232?video=1151256770&play=1
http://www.cnbc.com/id/15840232?video=1151847343&play=1
http://www.cnbc.com/id/15840232?video=1151256789&play=1
http://www.cnbc.com/id/15840232?video=1151253486&play=1
http://www.cnbc.com/id/15840232?video=1151163727&play=1

Commodities

Well it was back to work on the panel of "Options Action" last Friday. On topic were commodities. The market is in a confirmed uptrend. However, stocks are well off their 52 week highs and all eyes are on the commodity markets. As I explain on the panel, when volatility rises it usually means stocks will decrease. However in commodity markets, they tend to follow implied volatility. Since we saw a spark in implied volatility or fear in inflation the past weeks you can see why we saw a lot of call buying. In other areas hear what I think of about the panel's strategies technology, oil, and other option strategies.

http://www.cnbc.com/id/15840232?video=1144371493&play=1
http://www.cnbc.com/id/15840232?video=1144307818&play=1
http://www.cnbc.com/id/15840232?video=1144304571&play=1
http://www.cnbc.com/id/15840232?video=1144282031&play=1

Mixed Signals

On Monday, we saw some nice gains in the market. That being said, there are still are a lot of question marks on the horizon. Oil and Gold continue to rise which is sparking some inflationary fears. With these mixed signals, there are a lot of option strategies out there. The good news in this market is the fear level is gone. The bad news is that we may not be ready to keep climbing. With this comfort zone, find out the best option strategies as the panel discuss their views on the past airing of "Options Action".
http://www.cnbc.com/id/15840232?video=1136787106&play=1 http://www.cnbc.com/id/15840232?video=1136787118&play=1
http://www.cnbc.com/id/15840232?video=1136780089&play=1
http://www.cnbc.com/id/15840232?video=1136691414&play=1


Heading into Summer

With the dog days of summer almost upon us, it's time to start thinking about option strategies. Most of the time, the summer is when markets are calm. However, this may not necessarily be the case for options. Playing both sides, options give you an edge as you decide where you think the market may be. On Options Action, the panel had many interesting topics on their plates. As volatility continues the shrink, the fear in the market is slowly deteriorating. However, this may not mean a jump is coming. There is still a lot of uncertainty out there. Putting this all in prospective click below to hear all the newest option strategies.

http://www.cnbc.com/id/15840232?video=1131628744&play=1
http://www.cnbc.com/id/15840232?video=1131630253&play=1
http://www.cnbc.com/id/15840232?video=1131628723&play=1
http://www.cnbc.com/id/15840232?video=1131628711&play=1

Consolidation

We have seen a nice run in the market since its lows back in March. This technical climb may be slowing down, however. In the housing sector we may have not seen a bottom just yet and in areas such as unemployment, numbers continue to incline. Hear Dan Deming explain this in greater detail during his media blitz this week as he appeared on CNBC's "Word on the Street", CBOE TV "Trader Talk, and CNBC's Stock Blog.

http://www.cnbc.com/id/15840232?video=1127866812&play=1
http://www.cnbc.com/id/30827823/site/14081545
http://www.youtube.com/watch?v=_eZCerZ51UI&feature=channel

Volatility Shrinking

As we head into May expiration, the VIX keeps dropping. It is now just under 30 as the economy shows signs of recovering. Despite this volatility levels in other sectors such as financials remain high and many traders have a feeling of complacentcy and are looking for some protection. On last week's "Options Action" hear what the panel thinks as they discuss their latest strategies. Also you may want to pay attention to the "final call" segment of the show with a special announcement of a brand new option of my own.
http://www.cnbc.com/id/15840232?video=1125602824&play=1
http://www.cnbc.com/id/15840232?video=1125599782&play=1
http://www.cnbc.com/id/15840232?video=1125588346&play=1
I was still out of the action on last week's "Option's Action". However, there was still a lot to talk about. As bank stress tests came to a close, many investors were wondering to make of it all. Some bank stocks such as Wells Fargo went up 40%. Hear the panel discuss this as well as other important strategies.
http://www.cnbc.com/id/15840232?video=1118671341&play=1
http://www.cnbc.com/id/15840232?video=1118671319&play=1
http://www.cnbc.com/id/15840232?video=1118670944&play=1

Thinking Ahead of Stress Tests

Even though I couldn't make this past "Options Action", it was real informative. This week in the market may be an important one as financials prepare for key stress tests. In light of this, hear the panel's prospective and their latest options strategies. 

http://www.cnbc.com/id/15840232?video=1111149792&play=1 http://www.cnbc.com/id/15840232?video=1111168916&play=1 http://www.cnbc.com/id/15840232?video=1111168903&play=1
http://www.cnbc.com/id/15840232?video=1110959797&play=1

Trimming the Fat

On Thursday, I had a chance to discuss on CNBC the latest news about Chrysler's Bankruptcy. As you will hear in the interview, this may give Chrysler a chance to restructure debt and move forward as they"trim the fat". In other topics, while we start a recovery and Americans start going back to work, there are some stocks to think about. 
http://www.cnbc.com/id/15840232?video=1108693368&play=1  

Swine Flu Plays

The possible Swine flu epidemic  has led to some lower volume trading on Monday. With a mid-day rally, it became apparent that investors are playing the waiting game.  This environment has led to some short term opportunities in the pharmaceutical markets. In other areas, Mexican stocks have tumbled and have led to some buying opportunities especially in the telecommunication sectors. Click below to hear these strategies as I had a chance to explain it all on CNBC's Final Call. 
http://www.cnbc.com/id/15840232?video=1104852467&play=1 

Tech Earnings Out, Moves Unchanged

We saw some interesting findings in the market this past week. Tech earnings came out with some positive news. However, we saw few moves in the tech sector itself. On the latest "Options Action" hear my as well as the panel's latest strategies. What does this all mean for the future and how to profit in a possible "sideways market".

http://www.cnbc.com/id/15840232?video=1103240055&play=1
http://www.cnbc.com/id/15840232?video=1103233616&play=1
http://www.cnbc.com/id/15840232?video=1103150605&play=1

Option Enthusiasm

The VIX closed at 35 this past Friday which has led the way to a feeling of optimism in the options market. On the latest "Option's Action" you will hear the latest option strategies as we head into some important earning reports.
http://www.cnbc.com/id/15840232?video=1096876099&play=1
http://www.cnbc.com/id/15840232?video=1096873941&play=1
http://www.cnbc.com/id/15840232?video=1096876256&play=1

Options 101

Last week on Options Actions viewers got a chance to review and learn the basics about options. Click below to find out everything what you wanted to know about options but were afraid to ask.

http://www.cnbc.com/id/15840232?video=1088509686&play=1
http://www.cnbc.com/id/15840232?video=1088510272&play=1
http://www.cnbc.com/id/15840232?video=1088509666&play=1
http://www.cnbc.com/id/15840232?video=1088074703&play=1





Back to the future

On the latest "Options Action" hear why going back in time, particularly to 1998, may be a useful tool in analyzing future call spreads. Also Learn why being an investor "pig" is not a wise thing to do.

http://www.cnbc.com/id/15840232?video=1082377071&play=1
http://www.cnbc.com/id/15840232?video=1082298531&play=1
http://www.cnbc.com/id/15840232?video=1082373323&play=1
http://www.cnbc.com/id/15840232?video=1082372817&play=1

In like a lion - Out like a lamb

As always at this time of year, the March Lion is giving way to spring. On Wall St, investors are hoping for the same relief from the long recession. Despite some losses last Friday, the market held true to this hope. On the latest "Options Action", you can hear my latest analysis of the VIX, how the VIX compares to the VXN (The NASDAQ Volatility), and my latest option strategies.
http://www.cnbc.com/id/15840232?video=1075731375&play=1
http://www.cnbc.com/id/15840232?video=1077930495&play=1
http://www.cnbc.com/id/15840232?video=1075760553&play=1

Change We Can Believe In; A VIX below 40

The market rally continued this week and many investors were left wondering what to make of it all. Dan Deming explains on marketwatch.com and on CBOE TV's "Trader Talk" why the VIX holds all the answers.

http://www.marketwatch.com/news/story/Measure-uncertainty-remains-elevated-even/story.aspx?guid={CB2930BD-3396-4F6C-A79D-D97D9DE11A5C}&dist=SecMostRead

http://www.youtube.com/watch?v=sNt3A2mcoys

March Madness

We all know that March can be filled with "bracket madness". In the markets we also have seen a "buying madness". On the latest "Options Action"I had a chance in discussing where we have seen this buying madness and where the buying gone a little too mad. Hear my latest option strategies.

http://www.cnbc.com/id/15840232?video=1067882665&play=1
http://www.cnbc.com/id/15840232?video=1067883501&play=1
http://www.cnbc.com/id/15840232?video=1067883514&play=1

All Eyes On the VIX

The big rally last week has sparked at least for the moment some optimism into this market. As we see a contracting VIX, click below to hear what this all means as well as the latest options strategies on the latest episode of Options Action.

http://www.cnbc.com/id/15840232?video=1061222488&play=1
http://www.cnbc.com/id/15840232?video=1061222467&play=1
http://www.cnbc.com/id/15840232?video=1061183642&play=1

Some Options to Think About

The following analysis is from Paul Foster:

United Parcel Service-UPS volatility at 49. shares Rally off record lows
United Parcel Service is recently up $2.50 to $40.80. Crude oil futures are recently down .62% to $46.78 according to Bloomberg. UPS call option volume of 9,610 contracts compares to put volume of 3,713 contracts. April option implied volatility is at 49; July is at 47; above its 26-week average of 44, according to Track Data, suggesting larger price movement.

DryShips-DRYS call volume and volatility Elevated
DryShips is recently up 49c to $4.57. DRYS call option volume of 22,762 contracts compares to put volume of 6,311 contracts. DRYS April option implied volatility of 183 is above its 26-week average of 142, according to Track Data, suggesting larger price movement.

Heading into Expiration

On the past "Options Action" in case you missed it, we discussed a wide number of topics. This included retail and technology options and the latest news on oil and gold. Hear my advice on where the volatility is contracting as we head into February options expiration.

www.cnbc.com/id/15840232?video=1033118325
www.cnbc.com/id/15840232?video=1033110842
www.cnbc.com/id/15840232?video=1033118255

The Wild Card

On "Squawk on the Street" Dan Deming had a chance to discuss Timothy Geithner's testimony on unveiling of the Stimulus overhaul plan. Dan points out the passage of the stimulus bill is a real wild card on its affect on the market. His wild card analysis was proven right. Even though the VIX was contracting, markets plunged later on in the day as investors did not feel confident in hearing specifics from Geithner.

www.cnbc.com/id/15840232?video=1028946704

Interpreting Volatility

Here are some links to the past show of Options Action. On the program, I offered advice on how to use volatility levels in the market to make future trades. Specifically, we are seeing a contraction in volatility in sectors such as technology. However, in other areas such as in certain financial institutions volatility has risen. In light of this, hear my take on which options are a better buy and which are not.

http://www.cnbc.com/id/15840232?video=1027230286
http://www.cnbc.com/id/15840232?video=1027230268&play=1

Option Optimism

January was a bad month for the market and the economy. Poor economic data, high unemployment, and bad news in the housing and credit sectors all have not helped a potential recovery. However in case you missed this past Friday night's Option's Action, you may be surprised what I had to say and why we might see some bullish signs soon.

http://www.cnbc.com/id/15840232?video=1018815009

Dan's Take

Dan Deming was once again a busy man during the holiday season and through the new year. Hear his take on CNBC and CBOE explaining a declining VIX, the January Effect, insights into the Russell index, as well as his early 2009 market forecast.

http://www.cnbc.com/id/15840232?video=974588394

http://www.cnbc.com/id/15840232?video=982466011

http://www.cboe.com/TradTool/webcast.aspx?channel=885&movieid=43630

Start Spreading the News

Stutland Equities will now have some national exposure as CNBC has announced a new show called "Options Action". The show will be hosted by Melissa Lee with a panel of four experts which includes yours truly. The show will be fast-paced round table discussion. I hope to provide some insight on how to profit from the news of the week using options. The show will start on January 16 and air at 11:30pm EST. on Friday Nights and will repeat on Saturday and Sunday mornings at 6:00am EST. Stay tuned for more details.