Today, I would be remiss if I didn't discuss what is going on in SLV. The ETF is on the rally, but the option implied volatility has exploded
SLV Volatility is Exploding, and Skew is Completely Overbought…I think!!!
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Market Up, VIX Down, SPX Implied Volatility…Up?
The SPX Launched Upward yesterday and never faltered. As in most cases, when the market was up, the VIX was down.
The State of Volatility in the SPX
In the last few days we have seen the VIX hit near 3 year lows, bounce almost 30% and fall back right to where it started.
The Daily Options Report Memorial VIX Contango Blog
As someone who watches SPX volatility and VIX movement probably as closely as any blogger/educator this side of Bill Luby, I have to say I have been impressed by the ability of the VIX futures to hold up so well relative to the cash VIX.
As VIX drops Implied Volatility Creeps Up
I was reviewing the SPX yesterday, noticing how while ATM IV has been falling; the SKEW of the SPX has not been decreasing in the same respect.
Analyzing GOOG Implied Volatility Ahead of Earnings
My opiton mentoring students are often asking me to analyze stocks into earnings. I thought today I could give an example of what I might look at when analyzing a stock like GOOG.
Using Skew to Determine the Width of a Bull Credit Spread
When selling a put spread (bull credit spread) a trader is really selling a put somewhat close to the money and buying the put somewhat further away.
Explaining Structure of the GVZ, the Implied Volatility of GLD
There are a couple of reasons why the VIX is such a good hedging product. The main reason is that when the market goes down the VIX goes up.
Financial ETF's Hitting New IV Lows: A Few Trade Ideas
As I have told many of my option mentoring students, now is not a great time to be trading income spreads in the major indexes (SPX, RUT, NDX, etc).
S&P 500 Term Structure is Extremely Negative
When I explain to my option mentoring students that just because implied volatility is low, doesn't mean that a calendar is a good idea…its days like yesterday that I am thinking about.
Don't Believe Your Theta
One of the most common mistakes my option mentoring students make is to misunderstand theta.
Could the VIX Become Obsolete?
As many of you know I spend a chunk of my time looking at SPX volatility…almost to the point of obsession.