STEVE SMITH TALKS OPTIONS STRATEGY
In 2013, the rising tide lifted almost all boats as 9 out the 10 major S&P 500 (INDEXSP:.INX) sectors all enjoyed double-digit increases, propelling the overall index to a whopping 30% gain. But expectations for the coming year are more subdued and active money managers, most of whom underperformed their benchmarks in 2013, are crowing that 2014 will be "a stock picker's market" as correlations will decline.
In a recent piece, I discussed the use of a paired options trade strategy to capitalize on a decline in correlations in 2014. Correlation refers to assets, sometimes in very different classes, moving up and down at the same time. Today, I want to look at the concept of dispersion. With paired trades, we used options to reduce capital requirements and increase leverage provided to improve the risk/reward profile.
Stock market volatility is on the rise, which not only presents trading opportunities in stocks, but in volatility itself. The recent 6% market decline as sent the VIX (INDEXCBOE:VIX) is up some 30% over past two weeks. I'm using this jump in the VIX to establish two separate positions in the iPath S&P Short-Term VIX (NYSEARCA:VXX): one low-risk long-term, which I'll look at today, and a riskier short-term one I'll discuss tomorrow.
Muck Rack makes it simple to find people, tweets, or articles that mention any name, keyword, company, hashtag etc. We've compiled this guide to help you make the most of your search.
Selecting a term
Start searching tweets, articles from media outlets, articles mentioned in tweets, journalists'
names, titles and bios with some suggested searches:
Companies or Topics (e.g. iPhone, Microsoft)
Phrases (e.g. "cloud computing") — use quotes to keep the terms together
Twitter handles (e.g. @username) — returns those who have mentioned or replied to
Names (e.g. "David Pogue")
Hashtags (e.g. #sxsw, #london2012)
Bio details (e.g. vegan, Olympics, father)
Muck Rack's Advanced Search allows for many boolean operators.
Find results that mention multiple specified terms, use AND or
+. For example, ensure each result contains both Elon Musk and Mark Zuckerberg by
searching Musk AND Zuckerberg or Musk + Zuckerberg.
Use the operators OR or , to broaden your search when you'd like either of
multiple terms to appear in results. (This is the default behavior of our search when no operators
are used). For example, results will contain either cake or cookie by searching cake OR cookie or cake,cookie
Use NOT or - to subtract results from your search. For
example, searching Disney will yield results about the Walt Disney Company as well as Walt Disney
World Resort. To exclude mentions of Disney World, search for Disney -World or Disney
When using one of these operators with a phrase, enclose it in quotation marks. For example, you can
find results about smartphones excluding Apple's iPhone 4S by searching smartphone -"iPhone
Exact case matching or punctuation
If you're searching for a brand name or keyword that relies on specific punctuation marks or capitalization, you can
find results that match your exact query by adding matchcase: before the keyword you're searching for, like matchcase:E*TRADE .
Use parentheses to separate multiple
boolean phrases. For example, to find journalists talking about having fun in Disney World or
Disneyland, search for ("disney world" OR disneyland) AND fun.
An asterisk can be used to search for any variation of a root word truncated by the asterisk. For example, searching for admin* will return results for administrator, administration, administer, administered, etc.
A near operator is an AND operator where you can control the distance between the words. You can vary the distance the near operation uses by adding a forward slash and number (between 0-99) such as strawberries NEAR/10 "whipped cream", which means the strawberries must exist within 10 words of "whipped cream".