What are the nuances of trading options in a high volatility environment?

Listen to Options Bootcamp 74: Trading Options in a High Volatility Environment

Basic Training:
The Return of Volatility!

  • VIX is not dead.
  • VIX jumped from 13.99 on 2/2 to 38.30 on 2/5, and 46.34 on 2/6.
  • What are you thought on the recent resurgence of volatility in the marketplace?
  • Do you think this is a temporary aberration or have we transitioned into a new volatility regime?
  • What is the impact of higher volatility on options strategies? What is the impact of this change for options traders?

Mail Call:
Options Flashpoll

The proposed third exchange from MIAX will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel’s back? Or are you too busy getting great fills to care?

  • 44% – More Exchanges the Better
  • 22% – Please Make It Stop
  • 34% – Don’t Care: I get filled

Listener questions and comments:

  • Question from Allan Tullman – There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
  • Question from Scott Somer – For Jill Malandrino: When CBOE does their floor reports there is an open outcry din from the SPX, VIX areas. Are there areas on the Nasdaq PHLX floor that also have that type of din, and if so, what names are getting this din?