A lot of traders that are new to options have to first deal with the number of moving parts in an option contract and all the permutations that fall from it.
How Does Risk Change in a Short Call Assignment?
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VIX vs VXGOG Forming a Trade?
We are constantly correcting our option mentoring students about the state of the volatility. The VIX is NOT cheap, it is expensive, not on a historical level, from that perspective, and it's about normal, but on a relative level.
Did the IV in the SPX Confirm the Rally Yesterday?
There were more musings out of Europe of a TARP like bank recap for troubled banks along Mediterranean.
Is the Apocalypse Upon Us?
Go away on vacation and look what happens. The Treasuries make an all time high (or low yield) because the USA missed the jobs number.
A Breakdown of the New Facebook Options
I promise this will be one of the only Facebook options posts I put up over the next few weeks. However, I wanted to make sure that I pointed out a few interesting tidbits about options on facebook that, maybe, the average retail trader might not have noticed.
VIX and SPX Locked In a Cage Match. Who Will Win?
The tough love at the big Euro Summit did not really produce the news that stocks were looking for this morning.
AAPL, VXAPL Acting Rational Again
Many of you might recall that, in the face of many angry AAPL lovers, we here at Option Pit were pointing out how screwy the volatility of AAPL options were.
I Would Not Buy GRPN with a Groupon Coupon
Europe is putting big pressure on the US equity market. In fact the close to close activity looks much more benign I think than the intraday selling.
Backwards No Es Bueno
I am thinking back to a different place, say mid March when the VIX was trading 13.66 this year.
Something Jiggy This Way Comes
Two days in a row and we have seen some pretty nutty market movement. You would not know it though by the close to close numbers.
SPX IV Back on Track
I have been commentating over past few weeks about the whippy nature of the SPX and SPX IV.
VIX Pulls 180 Reversal, Breaks Correlation in Opposite Direction
When the market was down almost 14 points something odd struck me, the VIX barely moved.