Don’t miss our Saturday class in March-?How to sell puts in an ugly market.
At the risk of overkill, ?I would like to point out how firm IV was all day yesterday, in spite of the?SPX?being up 20 and the SPX breaking all-time highs. ?In the last three months we have broken 1840 on a couple occasions. ?This option vol is the highest it has been of any of those trades:
Livevol (r)?www.livevol.com
While the SPX could go higher, ?all of the things I look at continue to point out how toppy the market is. ?I think straddles, despite the higher IV, might actually be UNDER priced.
The Trade:
We are steering clear of direct short vol plays like VIX and VXX.