Keeping You Informed of Industry Changes, News and More

Click here for a PDF version of our July performance numbers.

It would seem like a tale of two markets of late. One day listening to CNBC the prognosticators profess doom and gloom, the next day full steam ahead. While the market has been volatile of late thus far the underlying S&P 500 Index is sitting a bit above where it was when we first placed our primary HiPOS trade. So, are the market winds changing back to bullish?

After a respite yesterday, volatility came surging back this morning as the markets once again sold off. This leg down along with the rise in implied volatility provided an opportunity to enter a new position utilizing short put spreads going out to September 6th.

Last week we saw our previous primary HiPOS conservative trade expire worthless. Worthless in price, but for your clients it represented a full profit over the 2 weeks. While the markets sold off a bit post Fed decision and the Presidents latest comments on tariffs and China, the underlying markets never got close enough to the short leg of the spread to pose any issues.

It has been refreshing lately to turn on the various financial news outlets to find guests speaking about portfolio hedging. Of course this is nothing new for ZEGA.

The triangle symbolizes delta. Delta represents the change in something else and is quite relevant when we talk options. You see, an option’s Delta represents what the change in its price will be due to a 1-point change in the underlying.