To quote a famous 1972 song from Stealers Wheels, the market is “stuck in the middle with you”. This may come in handy should you find yourself in a random trivia game, or it could just be a nice analogy to where we’ve wound up in the underlying S&P 500 Index.
Jay was able to speak with Oliver Renick on the TD Ameritrade Network this morning regarding what ZEGA’s traders are looking at in today’s markets. With the heightened volatility lately, Jay went into detail about the Pairs tactic that is used in HiPOS Aggressive.
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It would seem like a tale of two markets of late. One day listening to CNBC the prognosticators profess doom and gloom, the next day full steam ahead. While the market has been volatile of late thus far the underlying S&P 500 Index is sitting a bit above where it was when we first placed our primary HiPOS trade. So, are the market winds changing back to bullish?
After a respite yesterday, volatility came surging back this morning as the markets once again sold off. This leg down along with the rise in implied volatility provided an opportunity to enter a new position utilizing short put spreads going out to September 6th.
Last week we saw our previous primary HiPOS conservative trade expire worthless. Worthless in price, but for your clients it represented a full profit over the 2 weeks. While the markets sold off a bit post Fed decision and the Presidents latest comments on tariffs and China, the underlying markets never got close enough to the short leg of the spread to pose any issues.