Three volatility regimes in as many weeks. Hooray for the election!
Download The Advisors Option 49: Analyzing the Impact of Post-Election Volatility
Options 101: Looking back at post-election volatility. How has it impacted the options market and your current trade style or outlook?
Takeaways:
- Patient volatility traders won the day.
- Many options traders were on the sidelines in most names after-hours.
- Always watch out for skew.
The Buzz: What do busy advisors need to know?
- Straight Talk on Put Options
- Funds go exotic with put-write options to stem volatility.
- Options volume increased 20% in November. Highest November ever for options volume and third highest month ever for cleared futures volume
Office Hours: Taking listener questions and comments
Options#QuestionOfTheWeek: Commodities are capturing a lot of attention and generating a lot of #Volatility. What’s your option of choice?
- $GLD / Comex Gold
- $USO / $WTI
- $TLT / ED / 10YR
- EUR/USD, GPB/USD
- Question from Jay Allen – What do you typically recommend for hedging portfolio risk SPY puts or SPX puts? Can you please explain some of the differences and why one product is superior to the other. Thanks for the show and the app.
- Question from JT Monroe – I overwrite calls for a handful of clients mostly in SPY. I?ve tried to grow my options book of business but it seems like I?m mostly lumped into the Alts segment. I refer to it as the Alts ghetto because the allocations are so paltry. How do I get clients to start viewing basic overwrites as part of their traditional equity allocation rather than a paltry 2% Alts allocation?