Within the Buy and Hedge Retirement Strategy, today our traders adjusted some tactical positions and thus reverted to the standard issue construction. You might remember that our analysis revealed that when markets selloff by a certain percent, it became advantageous to make adjustments that would capitalize on any rebound.
Jay Pestrichelli co-hosts this episode with Derek where they discuss the continued talk around Robinhood Traders buying deep out of the money options to force market makers to buy stock.
Friday ZEGA’s traders were able to leg into an iron condor position by selling a call credit spread. This one also expires this Friday October 2nd. Which if you pull up any calendar, is only 4 trading days away.
As we can see by our usual graph, the market has cooperated quite well given we are short a call spread. While the market moved higher and even made a new all-time high this week, with the time to expiration waning, the value of the spread dropped in value
Jay Pestrichelli joins Market Moment Podcast to discuss options including Puts, Calls, and Everything in Between. Jay answers questions and explains various uses and risks.
Today ZEGA’s trading team was able to locate a short call spread above the market residing at the 3500 by 3550 strike. One of the themes we have been talking about of late is this well-established higher volatility environment.