Week 41 Analysis

12 Oct

News for the week…

Alcoa (AA) kicked off earnings season last Thursday so expect a moving market over the next few weeks. Nothing on the news docket for the first three days of the week so we are expecting a continuation of the current trend.
The VIX dropped significantly today breaking into the teens. As the saying goes, when the VIX is low lookout below. This also makes it a good time for option buyers as premiums decline. As always, we never like to be positioned 100% in one direction so adding some put positions as well as calls will dramatically help balance the portfolio through this earnings season.

As for intraday trading, we are seeing an incredibly technical market even on lower volume days. This great trading environment should remain until the holidays when things will slow down.


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