Thank goodness for the stock market! My day was turning upside down in a hurry. While watching a fresh coat of Egg Shell Benjamin Moore Semi-Gloss dry, my mind was becoming overly stimulated, lucky for me I had the market up on my laptop, one glance over at it.... I became so relaxed I almost fell asleep. Thank you Mr. Market!
Today the SPY, an ETF that tracks the S&P500, traded in a $.40 range all day. A $.40 range for a $40 stock, is a 1% range and not so boring. $.40 on something trading for $196? Wow, someone wake me up when its's over.
Quadruple Witching? Was she flying her broomstick around Wall Street sprinkling Xanax on everyone?
In 1929 traders were jumping off buildings to kill themselves, in 2014 traders are dying from boredom.
Speaking of 1929, today marked the 1,929th day since the Market hit its lows on March 6, 2009. That should be good for a few Giant 1929 market crash analogies!
MARKET CRASH!!
37.678 reasons why the market is going to crash.. right now!! CLICK HERE NOW TO SEE HOW YOU CAN PROFIT IN A WORLD DESTINED TO EXPLODE!!!!
I love those headlines.
342 Reasons why you should wash your hands after touching dog shit.
$16.5 Trillion reasons why your grandkids are going to be indentured servants to the Chinese
1 Reason Why you shouldn't hold your breath too long
OK. You get the point.... I hope? Well if you don't you can Click here for 12 reasons why you don't ever get the point.
Let me get back on track here:
Today was Quadruple Witching. According to the media its a day when we are to expect greater volatility. Instead we got Quadruple Walking Dead. Perhaps next quarter we can just peg all the stocks at the close on Thursday, you know $GOOGL at $565, $AAPL at $91 $SPY at 196, and take Friday off!
The nice part about this Walking Dead market, is that option prices are cheap. It's been a great time to be trading options. (I recently wrote about it here)
Our $SCTY text alert last Friday for the $55.5 calls at $.52 worked out just dandy. $SCTY closed right at $69, not a penny more, not a penny less. Those $.52 options were worth $13.50 at the closing bell. $520 bought would be worth over $13,000 a week later.
Our $OPEN text for $77.50 calls at $.30, those closed at over $27 today. That is $300 into $27,000 from top to bottom. Or bottom right to top left. However you want to put it.
While the market has been the Walking Dead, its been alive over here.
Have a great weekend.
JB hosts the week ahead this Sunday night for members of the site. Last week he talked about SCTY and TSLA, the week before OPEN. What is it going to be this coming week? TUNE IN LIVE! He also answers questions..... and no he doesn't have a foot fetish, already asked and answered previously.
Below is the official CNBC definition of Quad Witching. Booooooo. Hope I didn't scare you.
CNBC says:
Quadruple witching refers to the simultaneous quarterly expiration of four sets of options: individual stock options, stock futures, stock indexes and stock index futures. This occurs once every quarter—on the third Friday in March, June, September and December.
Because futures and options investors must close out of their positions on those days, the market typically sees an increase in trading volume and volatility at that time.
"Witching" evolved from the fact that in the past, the expiration of futures and options contracts occurred not only on the same day but also at the same time—resulting in a frenzied period of greater-than-normal market activity and therefore dubbed the witching hour.