By Jay Pestrichelli
This week I joined Derek Moore once again on a podcast (listen by pressing play below) to talk about what else but volatility. In this episode we had a wide-ranging discussion on all thing’s volatility including:
- How the VIX Index is Constructed
- Nasdaq 100 (VXN) and Russell 2000 (RVX) Variants
- What is implied volatility vs historical volatility
- Comparing ZEGA HIPOS High Probability Options Strategy to Other Short Volatility Strategies
- Contrasting selling deep out of the money index credit spreads with selling at the money VIX Futures
- How and Where Volatility May Play a Role in Portfolio Asset Allocation
- And More…
Now, on our current primary HIPOS position. We reached expiration day for a successful realization of a full profit. You might remember this one also included the suspended target profit from our previous trade that we rolled forward to combine with our new one.
While the markets remained volatile during our holding period, by rolling further away to reduce risk and using our normal trading rules to establish the new short position, we were able to remain above not only the purple defensive posture area but also the lower short strike are.
The usual question we get now is when will the next trade be put on? Our traders are (as always) evaluating the volatility landscape to survey for trades that will qualify under our strict rules for entry. As I spoke about on the podcast, the current elevated levels of premium in the market make it more likely to find something sooner than later provided market conditions don’t change too much.
If we get a new trade on we will be back on the blog to update everyone.