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VIX 17.58 -0.48 -2.73%
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10 Ways Options News Can Improve Your Stock Trades

Sell the rally instead of buy the dips?

January 26, 2010 9:30 EST Related Symbols: , ,

you're watching: OptionsNews
What's OptionsNews?

An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.

In This Episode

How investors can play the moves in the market, and a look at Amazon (AMZN) as a play to sell the rally

On today’s Options News, Carrie Long and the ONN.tv team cover the significant drop in the CBOE SPX Volatility Index (VIX). The VIX dropped more than 8% to 25 as the broader market seems to have started a recovery rally. We could also see another drop in the VIX during today’s trading session following better-than-expected earnings figures from Apple (NASDAQ: AAPL) and Johnson & Johnson (NYSE: JNJ).

ONN.tv Chief Investment Strategist Jud Pyle discusses another strategy to interpret market moves: selling the rally, instead of buying the dips. Investors intrigued by these plays could take a look at Amazon (AMZN), which is scheduled to announce earnings after the market closes on Thursday. Pyle says AMZN is an example of a stock that might not drop, but might be hard-pressed to rally.

For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.