I am a firm believer that the mini options are going to be a great thing for the retail trader long term, as long as the retail trader can steer clear of television. ?There are 2 trades we hear more about on CNBC than any other trades. ? Those trades are GLD and AAPL. ?CNBC chatter is indicative of where the retail trader is investing. ?I wonder why the retail trader is still out of the market:
LivevolX (R) www.livevol.com
If we want to add in a third media darling, we can add Facebook. ?Here is a chart of the returns of these two trades:
LivevolX (R) www.livevol.com
The returns on these three HUGE names are abysmal. ?Traders: ?if you are hearing chatter about a stock from people that are not professional traders, lawyer, doctors etc, its probably not a good investment. ?To one more point, if news organizations are having dummies write emotionally driven OP-EDs on AAPL every day, it’s a sale: those guys are idiots
The Trade:
Implied vols on GLD (the GVZ) continue to be sky high. ? Now that the GLD move has happened we like selling premium in GLD options or getting short the GVZ outright.
If you want to learn what all this means- ?This is the type of information we will train you to analyze in our?gold course. ?If you needed help following this trade, you should be in that course. ?Call us at 888 Trade 01 and ask for Joel.