Sunday, March 29, 2015

seasonal 5 day hold on spy

the following chart shows the seasonal performance of buying $10,000 of spy on trading day 60 (monday 3/30/15) and holding for 5 days:

spy with sdi_seasonalStgy study

Friday, March 27, 2015

caveat emptor on unusual otm call volume

there's this rumor going around among option traders that 25% of all otm calls are insider trading. this rumor derives from the andrew ross sorkin story from last june (study asserts startling number of insider rogues) in the new york times. this rumor is a misrepresentation of the facts and can be dangerous to your trading success. here's why:

Tuesday, March 24, 2015

thinkscript include: sdi_hilo_cnt - chart label to display count of highs and lows.

think your stock is overbought and can't possibly go higher? think again. the sdi_hilo_cnt chart label counts the number of range highs and range lows on your chart and displays the count in a chart label. here's the picture:
aapl with sdi_hilo_cnt label
the chart label is saying that aapl pushed up new 1-year highs 56 times on this one year chart. the '252' is the number of bars in the lookback range and defaults to the number of trading days in a year. also note that aapl did not carve any new lows. this means that the chart low (not shown) is a number that aged into that designation. (and, yes, you can select the color for the label.)

here's the code: