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…)
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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…)
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…)
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…)
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…)
We’ve seen quite the reprieve in the S&P 500 (SPY) from the closing high set back on September 19th. (more…)