There are new options out there called NASDAQ OMX Alpha Indexes Options. This post will explain some of the aspects of this "New Kid on the Block" for options.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

Last week the markets once again turned their focus to Europe as Moody's downgraded Portugal's sovereign debt to junk status, along with a sell-off in Italian bonds and bank stocks.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

Last week's oversized bounce was probably due to two factors, the parliamentary vote in Greece forestalling a near term default event and the end of QE2 with the resulting bubble in the Treasury market that began deflating.

A lot of fear came out of the market yesterday. But how much?

One of the trickier things to do is to evaluate risk premium ahead of a market event.

Option traders, I was a quite a bit wrong last week.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

The coordinated action of the US and the International Energy Agency to sell 60 million barrels light crude oil from the strategic petroleum reserves has most likely put an end to "Oil's Endless Bid" as explained by Dan Dicker in his recent book.

There was quite an interesting development in the volatility yesterday. This is one of these days where close-close or open-open volatility misses all of the action, this is part of the reason I pay a lot of attention to range volatility.

Yesterday was an interesting day for the volatility complex. While the SPX enjoyed a huge up day yesterday in anticipation of a vote of confidence for the current Greek government, I could feel the trading tension.