I haven't made any new trades recently, but I'd like to layout my thoughts on the markets as I search for a new play.
My NOK has had its ups and downs. Still 30 days until expiration so we'll see what happens.
As volatility has been at historically low rates, I've been having trouble finding verticals that carry a good risk/reward ratio. Not that they're not out there, but the low volatility is making good trades more difficult to find. To make any money selling a bull or bear vertical you must sell options almost ITM. This gives little margin for error should a stock rally or dive on unexpected news.
Today inflation finally had a negative effect on the markets. The countless months and emergency interest rate cuts finally seem to be having their effects on market psychology. My next play will most likely be on the bear side due to the effects inflation news had on the markets today. More negative inflation news is sure to come.
BTW, I found our blog rather easily on google search today, that's pretty sweet. AL
Tuesday, May 20, 2008
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