My option mentoring students will tell you when it comes to option trading the two things I probably talk about most are implied volatility and skew.
How to Tell when Your Cheap Puts are Expensive: The Curve Vol Index
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VIX Future Term Structure Widened Significantly
In a which came first the chicken or the egg scenario, when it comes to VIX and SPX, the answer might be the Chicken.
SPX Term Structure Not Buying this Rally
One of the questions my options mentoring students always ask me when we are coming off of VIX spikes is whether this is the end of the spike.
An Express Options Play on the OptionsXpress Buyout
To say that I think Schwab is getting a deal here is the understatement of the century.
How Much Was Implied Volatility Down Yesterday in the SPX?
I think it is always interesting to evaluate how much the S&P 500 is really down or up relative to what the VIX is reading.
Position Sizing
I highly suggest that you follow strict position sizing based on your money management parameters.
Money Management
I know many traders (and former traders) that have blown up their accounts (in some cases several accounts) and had to stop trading.
Never Pay Full Price
One of the most important lessons that I learnt as an options trader was the concept of selling something to pay for something else.
SPX Implied Volatility Almost Completely Unchanged
Clearly the market does not think the turmoil is over.
The State of Volatility in the SPX
This is the most interesting trading since last May, so I thought it might be time to check in on The State of Volatility in the SPX.
SPX Implied Volatility is Not Moving
A quick graphical example of the difference between volatility and the VIX
Lessons in Execution: OEX Double Calendar
Option traders, any one of my option mentoring students can tell you that I am not usually a fan of double calendars. However, under specific circumstances they can make some sense.