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1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Friday June 15, 2012
Hello Traders,
Hello Traders,
Tomorrow ( Friday June 15th) is quadrupole witching day. Stock options, futures, futures options and single stock futures ALL expire.
Below is from a colleague of a colleague….
Expiration – comments ahead of this Fri from JPMorgan’s Marko Kolanovic – with key Greek elections coming this weekend, investors are closely looking for signs of stress in Europe and reviewing their tail hedging strategies. $610bn of S&P 500 monthly options are expiring this Friday, making it the biggest S&P 500 options expiration year to date. As these options don’t cover the election date, investors are rolling hedges into quarter-end, July and September expiry S&P 500 options. In addition, the open interest in VIX call options reached all time highs today (notional exposure of $430m per 1 VIX point). Put-call gamma imbalance is still very high (~$12bn per 1%). High level of put-call gamma imbalance means that investors hold option hedges and dealers are likely short these options and hence short S&P 500 gamma. Short gamma exposure of dealers could fuel market volatility and increase the risk of a sharp selloff, should the macro fundamentals significantly worsen.
ALSO June currencies are about to enter delivery stage, which can be costly. I highly recommend starting to trade September currencies as of Friday morning .
Be disciplined, be patient and trade well!
Continue reading “Trading Levels & Reports for Quadruple Witching Friday June 15th 2012”
