Unbeknownst to most retail rats a fight is taking place in the equities market, and it revolves around an exotic concept only known to a select few in the options trading world. I’m speaking of course about the weekly expected move, and what makes it so important is the fact that much of what drives stock markets these days is driven by the options market. How so? Let me explain.
I burned quite a bit of time fiddling with my earnings parsers this morning, so this post will be quick and snappy. But in a nutshell I was trying to write a Thinkscript indicator that would plot only the front week IV but ended up drawing them manually as their API documentation sucks blocks. Hopefully TOS support will sort me out by next earnings season as it’s a royal PITA. Anyway, the opening bell is only a few minutes away, so let’s get to this week’s goodies:
This is a quick update on my Tuesday post in which I strongly suggested everyone to detach yourself from trading direction and instead focus on much more predictable parameters such as 1) time and 2) volatility. To that end I introduced you to the concept of selling calendar spreads which is one of several strategies Tony and I have been experimenting with over the recent past. Now let’s see how we fared!