While many investors and traders stare open-mouthed as the Nasdaq and S&P 500 approach their all-time highs in the face of a crippled economy and wave of social injustice protests, there’s one segment of the stock market that has not only reached its previous February 2020 peak, but also surpassed it: the SPDR S&P 500 … Continued
While some traders use options to make directional bets via so-called “naked options,” many use derivatives to express opinions on implied volatility. Implied volatility has historically exhibited a tendency to mean revert, meaning high levels of implied volatility tend to decline back toward the historical mean, and low levels of implied volatility tend to rise … Continued
With equity markets currently in melt-up mode and the VIX dragging near historical lows, there haven’t been a myriad of great opportunities to sell options premium. However, while the VIX may not be flashing “sell” when it comes to short volatility, options traders have the ability to filter for potential opportunities using another tactic—namely, the … Continued
While the heavyweight in global energy markets remains crude oil, natural gas is no slouch. On any given day, trading volumes in natural gas futures are typically the second highest within the energy sector. Even when considering the entirety of the futures-trading marketplace, total daily volume in natural gas usually places it in the top … Continued
With equity markets in correction mode at the start of October, current market conditions are opening up plenty of new opportunities on the short side of the volatility coin. And if you want to learn more about the potential of short volatility, or rather the power of falling implied volatility, then a new episode of … Continued