What s Happening Financial giant Citigroup C will announce fourth quarter results on January 16 Analysts expect earnings of 1 18 per share During the same period last year the company earned 1 14 and the stock has gained 13 0 since the end of June Technical Analysis C was
Among the underlying components of the S amp P 500 index we saw noteworthy options trading volume today in Hasbro Inc Symbol HAS where a total of 10 904 contracts have traded so far representing approximately 1 1 million underlying shares That amounts to about 84 8 of HAS s
After touching a record high in intraday trading the Dow ended the day just below breakeven snapping a four session win streak However the S amp P and Nasdaq both finished at record closing highs and have yet to end a session in 2018 in the red A rally in several tech and
Shareholders of Boise Cascade Co Symbol BCC looking to boost their income beyond the stock s 0 7 annualized dividend yield can sell the July covered call at the 45 strike and collect the premium based on the 1 95 bid which annualizes to an additional 9 1 rate of return against the
The first trading day of 2018 started on a strong note with the Dow up nearly 145 points out of the gate this morning The blue chip index peaked early in the session though despite upbeat manufacturing data and an extended slide for the U S dollar While the Dow finished just off
The Dow Jones Industrial Average DJIA 160 closed lower today yet still finished 2017 on a high note by securing monthly and quarterly wins For the year the Dow tacked on 25 on its way to 160 71 record closes and its ninth straight month in the black the longest monthly
In trading on Wednesday shares of Mondelez International Inc Symbol MDLZ crossed below their 200 day moving average of 43 24 changing hands as low as 43 15 per share Mondelez International Inc shares are currently trading down about 0 4 on the day The chart below shows the one
December VIX went off the board and January became the front month this past week. VIX moved higher for the week, however, all the standard futures moved down a bit. The contango is still steep as traders start to brace for 2018.
Late Friday someone executed the VIX version of a covered call focusing on the standard March expiration. About 1200 of the VIX Mar 13 Puts were sold at 1.92 and March 13 Calls purchased for 2.03. For those who don’t remember their put-call parity from school short put plus long call is the equivalent of being long the underlying. In VIX world the closest thing to an underlying for the options is the corresponding future. At the time of the trade the March VIX future was trading at 13.10, the synthetic long position created by selling the put and buying the call cost 0.11. Adding 0.11 to the strike price gives you an equivalent price of 13.11.
Now that I’m done lecturing about put-call parity I’ll get back to the trade. The trade was finished with the VIX Mar 23 Calls being sold for 0.76. The net result was a credit of 0.65 and a very familiar looking payoff at expiration.
The volatility index price action relative to the equity market price action was pretty interesting last week. The S&P 500 was higher, as were three of the four volatility indexes calculated using S&P 500 option pricing. VXST was lower, but that is very common before three day weekends due to the calculation methodology (calendar days) when we have the market closed for three days.
VVIX stays over 90 and moved up a bit last week and TYVIX moved nicely off closing at an all-time low on the previous Friday. The long funds suffered a bit despite VIX moving higher as a reminder that VXX is not VIX.
Usually the holiday season with the extra days off results in volatility indexes suffering a bit of a head wind. I was surprised to the point of double checking numbers before posting the table below as I would have expected more indexes lower than higher last week.
UVXY hasn’t had a very good 2017, which is being polite. At least one trader thinks UVXY will not be gaining any of the losses back next week. With 2 minutes left in the day and UVXY at 10.10 a trader sold 600 UVXY Dec 29th 10.00 Calls for 0.43 and then purchased 600 UVXY Dec 29th 12.50 Calls for 0.14 taking in a credit of 0.29.
Note in the payout diagram above, UVXY only needs to drop 0.10 or more. Considering that UVXY dropped 36 of the last 50 weeks and the average weekly performance being down over 4%, this trade makes some sense. Barring a year end volatility event things should work out as hoped for this trade.
What s Happening Agricultural supply maker Monsanto MON will report its fiscal first quarter numbers on January 4 The company will report before the market open with the consensus calling for earnings of 0 42 per share versus 0 21 during the same period last year The stock is up 10
The Dow Jones Industrial Average DJIA 160 finished higher today but ended well off its intraday peak and fell short of a record setting 71st all time closing high for 2017 Both the 160 S amp P 500 Index SPX 160 and 160 Nasdaq Composite IXIC 160 also finished
National Bank of Canada TSX NA TO has been named as a Top 25 dividend stock according the most recent Canada Stock Channel DividendRank report The report noted that among the coverage universe NA shares displayed both attractive valuation metrics and strong profitability metrics