Today marks the 10-year anniversary of the infamous Flash Crash. Two things here, I cannot believe it has been ten years since the extreme dislocations in price occurred. But second, the lesson for many is still ingrained in investors and advisor’s memory of how unprotected some strategies were.
Today we entered a new HiPOS position. It is a call spread on the S&P 500 index very similar to the one that expired just yesterday, Wednesday the 15th.
Today the ZEGA trading team re-entered the short volatility market with a 4-trading day short call spread on the 3000/3050 strikes for a credit of just under 1%. This is the April 15th expiration date.
We are beginning to see implied volatility and actual volatility start to come back in line. For those of you that read our post on March 13th, you may recall we pointed out that the return for HiPOS wasn’t commensurate with the risk the positions took.
We exited the iron condor today around 10am ET after the market gapped open up nearly 6%. Without going through blow-by-blow of the trading day (and what a crazy day it was), we closed the position at about a net...
We thought it was about time to give everyone an update on the B&H Retirement strategy considering many folks have it as a large part of their investment allocation.