After quite a bit of downside volatility, the markets seemed to forget they were ever worried at all after several up days. Monday saw the S&P 500 Index fall back a bit yet the index itself is just around where it was prior to the series of drawdowns.
Click here for a PDF version of our April performance numbers.
Last week the market experienced more volatility than many have grown accustomed to. The price candles on the chart above show a greater range between the highs and lows many days. This intra-day volatility continued into Monday’s session.
Today ZEGA’s traders took an opportunity to put on a new HiPOS short put spread position using the S&P 500 Index (SPX). This was done as the opportunity met all the stringent qualifications under our trading rules.
Where is the warning level? The options market isn’t projecting any major sell offs at this point. Volatility remains low with a 12 handle.
Jay spoke with Wall Street Journal reporter, Amrith Ramkumar, about how trading volumes have fallen recently. Interestingly enough, volume and volatility have very similar trends.