Sheridan Options Mentoring Blog

Morning Commentary for Tuesday, August 17, 2010

August 17, 2010

E-mini S&P 500 1084.50 +7.50 EUR/USD 1.2882 +0.0098 30-Day Fed Funds 99.8150 -0.0025 Gold 1225.4 -0.4 Several Reports come out today: Housing Starts, Producer Price Index (PPI) and Industrial Production. Housing starts disappointed already. PPI was inline with the consensus. Industrial Production was a the upper end of the consenus. Markets are reacting favorably. European [...]

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Morning Commentary for Monday, August 16, 2010

August 16, 2010

Good Morning SOM traders…Last week the market reacted to news events with a gap down open on Wednesday with strong selling all day into a multiple SD drop by the close. This was followed by another gap down open on Thursday but ending with a much smaller move lower. Friday was also down but on [...]

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Dan Sheridan ARNA Bear Put Spread Strategy

August 13, 2010

Dan goes over a trade idea for the ARNA around an FDA announcement. Watch the video Subscribe to our blog via the RSS or email subscription.

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Do Weekly Options Have Too Much Risk?

August 13, 2010

I read a blog post today about the weekly options and how the risk was too high. The article was trying to explain that the wings are not priced correctly, which I agree with. The problem was the statement about risk vs time was incorrect. To quote part of the article: “…the July weekly in [...]

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Morning Commentary for Thursday, August 12, 2010 – Is the Summer Rally Over?

August 12, 2010

E-mini S&P 500 1079.25 -5.75 EUR/USD 1.2793 -0.0085 30-Day Fed Funds 99.825 0.0000 Gold 12007.2 +8.0 The markets had a strong reaction to the FOMC meeting on Tuesday. We’re still feeling the effects this morning. Markets are trading a bit lower and should open down. I don’t expect the markets to be too crazy today. [...]

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7 Benefits of Weekly Options

August 11, 2010

Weekly Options are relatively new but are catching on quickly. Traders in our community are testing the waters with them more and more. The CBOE has a page dedicated to weekly options at http://www.cboe.com/weeklys Here’s a list of seven benefits of weekly options: 1. High Frequency – Learn Faster Every week is a new trade. [...]

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Market Commentary Wednesday August 11th

August 11, 2010

The equity markets continue to sell off this morning in response to the cautious tone from yesterday’s Fed statement. The economic recovery appears stuck in the mud at this point with a “jobless” recovery. Still the VIX is in the lower end of it;s recent range and income trading is still feasible. This week most [...]

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Morning Commentary for Tuesday, August 10, 2010 – FOMC Announcement Today!

August 10, 2010

Today is FOMC announcement day! The currency markets are all waiting for this announcement and one from the Bank of Japan today. Market participants will be looking for key wording on the intentions of the Fed going forward. The speculation is that the Fed will signal intentions to keep borrowing costs low due to last [...]

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Morning Commentary for Monday, August 9, 2010

August 9, 2010

Good Morning SOM traders…Last week the market did it’s usual dance to news events ending with yet another thriller on Friday by opening and grinding down on a disappointing pre-market Jobs Report only to rally almost all the way back by the close. The market shook off the bad news as it seems to continue [...]

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