As the markets closed today, we now mark two weeks of high volatility and high realized volatility. This week alone we’ve witnessed historic multiple 1000-point days up and down in the Dow Jones Index.
Jay Pestrichelli gives a strategy update on March 2, 2020.
Jay discusses some strategy tactics amidst the market volatility of February 2020.
While the selling started in the markets Friday, it intensified into the close on Tuesday. Today we saw the market try to rally up before settling in at the close down a bit from yesterday.
As the second week of our latest HiPOS Conservative trade ends, the market action has generally been bullish with a sprinkle of bear moves mixed in. One of the ways we monitor our HiPOS trades is by calculating the current distance from the S&P 500 Index to the short put strike.
After what seemed like a one-day event, volatility has receded as the underlying markets move back to all-time highs. This price action has been favorable for our HiPOS conservative trade as it results in the distance widening between the current price and the short 2875 strike.