The options market can be thought of as a type of voting mechanism. Implied volatility levels embedded in the prices transfer the opinions of how much markets are expected to move and the option values reflect that disposition.
After Friday’s successful expiration, the market has given us another opportunity to sell calls on the S&P 500 Index. This is the 3rd consecutive call spread placed in our HiPOS Conservative strategy; and that is unusual.
It has been 8 calendar days since we entered the most recent short call spread. To some of you, it might feel like the value of the position is running in place.
Frequent co-host Jay Pestrichelli joins the program to discuss all things VIX Index, what it measures, how stocks and markets each have their own volatility...
Jay spoke with Oliver Renick at the TD Ameritrade Network. You can see Jay’s interview
Today is expiration day for our short iron condor position in our primary HiPOS strategy. As you might remember this started out with just a short call spread but due to a volatility spike and drawdown...