Let’s have ourselves a cuervoslaugh-style Theme Song…providing inspiration for this post’s title is this amazing piece from Battlestar Galactica (re-imagined; Season 1 Finale) by Bear McCreary. Arguably the greatest TV series that I ever had the privilege of watching – its soundtrack being one of the many reasons it had been my favorite for the past 5 years:
[youtube:http://www.youtube.com/watch?v=tII1DSHPU80 450 300]The Shape of Things to Come is actually a culmination of the themes established in the previous episode’s intro with Passacaglia, which is amazing as well. The song’s motifs show up at key points in subsequent seasons, and are usually associated with certain characters (Pres. Roslin) and/or recurring ideas (the ‘Opera House’).
In any case, a rather fitting song for this overview of what you can expect to see on this tab for the next 4 weeks. May promises to be a rather hectic and busy month for me (similar to last year), so I feel it’s important to provide this plan up front.
Week 1:
Starting tonight, daily summaries of general put/call activity as well as highlights of some interesting/unusual individual equity options activity from the day that was. So essentially the stuff I’ve been putting up in the PG. But since I rule this tab for now, there might be more/smaller posts intra-day, especially if some egregious activity pops up somewhere.
Week 2-3:
This is where things get a little tricky. I have a European vacation planned for this time, which involves taking a break from the markets as well. But fear not…during this time, Veritas5-style, you will get regular/scheduled posts regarding options. These will include a general overview and various bullish/bearish/neutral strategies (for real, this time, I promise!). They will be written ahead of time and posted at regular intervals. Feel free to ask questions & make comments and I will try to get to them as soon as I get back (or if I get ultra-bored on the old continent).
If there is interest, I can also post some pictures – obviously these won’t be at all stock related. The plan is to explore my old haunting grounds, Budapest – Prague – Vienna and other places in between.
Also, if somebody wants to jump in as a guest blogger for a couple weeks, let me know. Assuming that Snr. Fly approves of this maneuver, you’ll get a little taste of the glory that is the KoPG (perks include even less readership than the PG and having to clean the iBC hallways with a toothbrush every night). To qualify, you must be able to read and write on an 8th grade level – so sorry j0sh1ngU, that means you’re out!
Week 4:
Back to ‘regular’ business as well as going through the questions backlog. Any work on developing a custom put/call index/equity ratio indicator will also begin at this time…
So hopefully we’ll avoid a situation like last May, when I had to egregiously pack up and suddenly leave thanks to a last-minute business mission to Italy.
Hope you enjoy your stay in the hallowed halls of my throne room! I’ll be back later with a look back at Friday’s options scene…
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DPeezy,
First – have a great vacation.
Second – any thoughts on a strategy or 2 to take advantage of increased volatility in Forex this week (Euro & USD)? Bearish to neutral on the Euro BTW.
Any specific names you’re looking to trade?
The only thing related with which I have any familiarity is UUP…
Expiration is only 2 weeks away for May options…should you want to bet a big move either way, a simple straddle might serve you the best…
For example, a May 25. straddle on the UUP is only about $0.50/contract…to make money, you’d simply need it to get above $25.50 or below $24.50 by May 15th.
For other volatility plays, you’d have to get a bit more creative and involve some June options, too (maybe some sort of ratio spread or double diagonal?).
That being said, UUP volatility _barely_ moves even during egregious price action…but that may not be the instrument you’re looking to trade…
DPeezy,
Mainly I want in on the volatility we should see this week in the Euro (without the risk associated with Forex or futures). Where the last few weeks have seen roughly 500 pip ranges, I am expecting a range of 700+ this week. Very volatile weeks in the recent past have been 700-1350 pips.
I did a quick post in the PeeG re: reasons for the volatility.
http://www.ibankcoin.com/peanut_gallery/index.php/2009/05/03/get-ready-for-heavy-volatility-in-the-euro/
lol nice bust on Josh, very appropriate. Enjoy your vacation!! I look forward to your put/call ratio and options action posts in the future.
Any thoughts on the VIX and whether or not we’ll see a ton of VIX action in the upcoming month?