After running the analytics today, ZEGA’s traders found a new short put spread for our primary HiPOS Conservative strategy. This iteration will have a January 31st expiration which is 17 trading days away given weekends and the Martin Luther King Jr. holiday on Monday the 20th. The underlying index is once again the S&P 500 and the profit target is 1%.
Recently I’ve been listening to various financial analysts talk about what the previous decades average returns mean for the next decade. Questions like: Where are we on valuations? What will earnings do? Where do the 2010’s as a decade rank in comparison to past decades with total returns (including dividends)?
As we edge closer to the Christmas and New Year’s holidays, we’ve seen markets rally and volatility subside. Looking at the VIX Index chart above, you’ll notice that implied volatility is trading at the bottom of its 2019 range.
ZEGA’s November 2019 Performance Numbers Release - Click here for a PDF version.
Back in October we published an article illustrating how at the absolute market lows in 2009, investors continued selling out of equities and into record levels of money market funds.
Today the ZEGA trading team acted on our current conservative HiPOS strategy position due to the market appreciation since entry. While this has not happened very often of late...