Friday of this week is expiration day, and it’s a shortened post-Thanksgiving trading session. Barring a dramatic downward turn in the market, you shouldn’t see much if any change in the remaining value of the spread positions prior to them being removed from the accounts after expiration.
After our last HiPOS position expired at full profit the ZEGA trading team is hard at work scouring the market for a position that would qualify under our strict rules. However, that has not materialized yet. One reason is that volatility as illustrated above in the VIX Index chart, has shrunk of late.
Jay broke down how ZEGA sells premium when volatility is slightly elevated. See Jay’s video with Oliver Renick today on Morning Trade Live at TD Ameritrade Network.
When our latest edition of our HiPOS conservative trade was entered the S&P 500 Index stood at 3020. Intraday Thursday we see the market hanging around the 2975 level in what I would call a bit of a meandering market.
Well, after what seemed like a volatile few weeks, the markets are just a bit higher than where we were at the entry of our current, but soon expiring primary conservative HiPOS trade. Looking at the graph above, you can see the market never seemed to make any threatening moves towards the position. So, after all that volatility, we are now just about where we were when it started.
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.