Ya, QQQ 27 looks like a good add point, but playing it so i can add more at 28 and 29 if we get that far.
Yes, David Nichols is from "21st Century". Been getting a spam email from them for 6 months now, and i like his outlook. The site is $60/mo, but looking over what's there, the only thing i seem to like is David's morning report... which i am getting for free right now.. -VBG-
Remember, the market makers always make you buy high, and sell low. If the VIX is falling, and the put/call ratio is high, it means the market makers are selling low . That's not bullish, not by a long stretch.
If the VIX is low, then premium is also low, why MM wants to sell it low rather than at higher price?
Their are many option strategies traders can use. A popular one is to sell naked puts, in other words, short puts. It's a bullish strategy, where the trader can make money if the stock (or index) rises or stays flat. If the stock goes down, then the short puts are automatically closed and the stock is "put" to the trader, in effect buying the stock at the put's strike price. That is what i think Mr. Nichols believes is going on. Traders are shorting puts, in anticipation of rise. If it's it a flat market, they still make money.
Are you familiar with option terminology like: intrinsic value, time premium, delta and gamma? |
