A New Broker and New Ideas

Well, if TD Ameritrade doesn't want my business, then I'll take my leave. Last week I withdrew all but $0.01 from my account over there and moved it to OptionsHouse.

OptionsHouse so far has sent me no notices of "option tier levels" or anything about needing approval to trade options. Good. I sent in a test order today, the first day funds became available for trading, and it was not automatically rejected as it was on thinkorswim. Good.

I have yet to be filled on any order, though. OptionsHouse was formerly TradeMonster until the two merged. I learned a great deal about the nature of options through the brilliant risk profile analysis tools over there at OptionsHouse back in 2012/2013. It's where I got my start. Although their platform doesn't feel as 'cool, sleek, and professional' as thinkorswim, it will suffice because of the great deal on commissions. A whole review of the two brokers and their platforms is coming...


Anyway, on to the new trade idea, which hopefully will be filled later today. Never originate a position from 9:30 to 3:00, unless of course you're day trading. It's 1:37pm as of writing.

XOP - IV percentile (IVP/IVR) = 98.
oil volatility index (OVX) is showing a 70 handle, and that screams overbought. If oil volatility is overbought, IVP should be very high, and it is. To me this leaps off the board as an opportunity. Selling premium aggressively in XOP, the oil & gas exploration ETF with the highest current IVP seems like the best way to take advantage of it. Looking at an iron condor for MAR-24 expiration:
20/22/28/30 @ 0.90

GLD - IVP = 100
gold has had a serious rally in 2016, up almost 13% The majority of that move came last week, with the GLD moving from 107 to 112. I think GLD is forming a cup and handle chart pattern, but right now it's missing the handle. Overall I'm bullish, but not enough to trade a bullish position. I'd rather take advantage of the high vol and sell premium on both ends, but far away from the market. Looking at an iron condor for MAR expiration due to the better strike selection: 105/107/121/123 @ 0.50