We experienced what is known as volatility crush today. (more…)
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Just One More Reason to Sell Options
The VIX closed above 20, just shy of the year-to-date high.
Not even three weeks ago the volatility, known by some as the “fear index”, was trading around 12.50…roughly 60% lower. (more…)
Vertically-Inclined
It was a wild week on Wall Street!
The government shutdown led the charge, which put the fear into most investors. Not options traders, more specifically options sellers.
Options sellers rejoiced as the investors fear gauge known as the VIX pushed significantly higher. And an increase in the VIX or implied volatility has a direct influence on the price of SPY options (and most other options)…it increases the price. (more…)
Selling Junk to Speculators
I, along with many of you, am in the business of selling out-of-the-money credit spreads with a high-probability of success.
Essentially, I sell junk to speculators. Take the following iron condor in Apple. (more…)
How I’m Playing the Surge in High Beta Stocks
Over the past several weeks we have seen the S&P 500 (SPY) and Dow (DIA) push lower while the higher beta indexes Nasdaq 100 (QQQ) and Russell 2000 (IWM).
As you can see in the table below both ETFs are now in a short-term overbought state.
There are a few ways I might play the overbought readings in IWM and QQQ. (more…)
