OptionsHouse

Options Trading News

March 21, 2014  Fri 11:02 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
The market is doing its best to frustrate bulls and bears this year.

If you are a bull, you are both heartened by the fact that winding down of tapering (quantitative easing, or QE), the conflict in Ukraine/Crimea, and a series of horrible winter storms have failed to knock the market down. Still, you have to wonder whether the struggle against all of the above has sapped the market's strength.

The bears have had thin gruel as well, as the first quarter brought nearly everything you could hope for to take the market down, yet the S&P 500 is unchanged on the year. Now bears have to worry what happens if the news and catalysts turn more positive (which is likely, especially on the weather front), with the prospect of the SPX trading to or through 2000 in the quarter.

There is also some concern over today's "quadruple witching," which marks the expiration of contracts for index options, index futures, single-stock options, and single-stock futures. But I think that everyone that needed to roll out of expiring March options has already done it, so I don't anticipate anything significant from expiry at the end of today's session.

One thing I do believe could muck things up, however, is how we trade into tax season. Cash paid to IRS is due April 15, and the market could be vulnerable if bad weather or Ukrainian issues return and coincide with a flight of cash to pay taxes.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »