The S&P 500 Index (SPX) currently sits just over 21% above the short 3200 put strike price through midday Thursday. While this trade was never threatened, it’s important to remember that anytime we put on a short volatility position, we are putting on risk.
Derek is joined again by ZEGA CEO Jay Pestrichelli to discuss what market capitulation looks like and are we there yet? Plus, they discuss how markets tend to turn up prior to the economy bottoming historically.
New HiPOS Conservative Trade - With a continued higher volatility regime ZEGA’s traders were able to put money back to work finding a short put spread expiring December 2nd that qualified under our strict rules.
Watch the TDA Network replay where Jay talks about volatility selling tactics and a dividend plus premium selling approach.
Today our primary HiPOS Conservative trade will expire worthless for a full profit.
HiPOS Conservative: We were able to take advantage of the recent move higher in markets and continued volatility to add a short call spread above the market.