Posts By: Steve Claussen


FED Meeting Over. Mid-Terms Next.
In looking at yesterday’s SPX cash chart, the market’s reaction to the FED meeting announcing as expected the end to QE net purchases, took all of an exciting 15 minutes (highlighted below). Most afternoons on “Fed Day” have been much more thrilling and despite some hawkish language in the statement released, the market actually closed…

TWTR’s Turn
Shortly after Monday’s closing bell, TWTR announced its 4th quarterly earnings report since going public almost 1 year ago. The company’s first 3 reports averaged 17.5% price moves immediately following earnings announcements. Yesterday the ATM straddle closed at $6.60 indicating a smaller move expected this time of only 13.5%. The straddle market is constructed by…

Brazil run-off election results are in!
Brazil’s incumbent president Dilma Rousseff has triumphed in the country’s closest election in a generation. By Sunday night, the president from the center-left Workers’ party, the PT, had 51.64 per cent of the valid votes compared with 48.36 per cent for her rival Aécio Neves of the pro-business party, PSDB, with 99.98 per cent counted,…

What a difference a week makes!
I have to comment quickly before leaving for the weekend on a remarkable month this has been!  An incredible last 8 trading days! The October 2014 market “correction” may go down in history as the shortest market pull back in history. Wednesday October 15th, 12 noon Chicago time, the S&P 500 index stood at 1820.66…

BABA Options Debut on Monday!
Alibaba’s stock IPO was a huge success by most measures. Volume on day 1 totaled over 270 million shares and the price performance that day appreciated 38% from the IPO price. Chapter 2 of the trading life of BABA will commence on Monday morning with the listing of options on the shares. BABA is expected to…

Covered Calls Have Arrived!
One of my colleagues here at OptionsHouse, who is a tournament crossword puzzle competitor, shared with me last Saturday’s Washington Post’s puzzle. He highlighted the answer for clue for 17 across: “Options strategy also known as a “buy-write.” Those folks who attended our recent webinar should recognize that answer immediately! The Covered Call. My point is…

Weekly Options and Earnings
We are in entering the heart of the corporate earnings season with IBM and Google announcing their quarterly results after the close tonight. Many other highly traded stocks report next week including NFLX, MSFT, AAPL and AMZN to only mention a few. You can gain a look into the future by checking the Options markets. The premiums…

GoPro Options available for traders.
You have likely seen this company’s geeky looking cameras on ski and bike helmets as downhill skiers and mountain bike enthusiasts are able to record their daredevil exploits. This morning options on GoPro Inc. are listed and available for trading daredevils – only 12 days after the stock first became listed via IPO on June…

Don’t write off the VIX yet!
Among a flurry of articles stating that the VIX was broken, the old fear gauge finally shows signs of life today. After spending the last week with a 10 handle, levels not seen since pre-financial crisis in early 2007, a double digit decline in the S&P 500 futures yesterday caught some traders by surprise. The VIX…

GTC orders now available for spreads
Option spread trading are strategies which advanced traders have used to limit risk and limit rewards to increase the probability of success. We have outlined several spread strategies through the years which can be found in our webinar archives I am happy to announce to spread traders we have the added functionality on the OptionsHouse…