Advisors! What were your lessons learned from 2014? Did you (finally) embrace options?

Click here to access the Advisors Option 26: Lessons Learned from 2014

Looking Back on 2014:

  • Misperceptions from 2014 – Despite “low” VIX options, volume still strong in 2014. Vol/VIX was too cheap. OTM call buyers did well.
  • Ukrainian crisis in Q1/Q2 and market volatility in October were two primary drivers this year.
  • The ongoing oil meltdown as well.
  • What option strategies worked in 2014? Put credit spreads and “Wheel of fun”.
  • Takeaways from 2014 – Do not get married to a single strategy.

Looking Ahead to 2015:

  • Things to keep in mind – It might be time for a smart hedge. Volatility has volatility.
  • Exchange fragmentation will continue.
  • Expand your horizons.