I had an interesting conversation with some of the traders in Option Pit’s Level 3 Professional Trading Group today. Actually, it wasn’t even a conversation.
If you haven’t read my post on the CBOE blog yet, you can do so by clicking http://communities.cboe.com/t5/What-s-On-Our-Minds/GVZ-The-CBOE-Gold-Vol...
As I have told many of my option mentoring students, now is not a great time to be trading income spreads in the major indexes (SPX, RUT, NDX, etc). This is not an uncommon occurrence.
When I explain to my option mentoring students that just because implied volatility is low, doesn't mean that a calendar is a good idea...its days like today that I am thinking about.
One of the most common mistakes my option mentoring students make is to misunderstand theta. This usually comes to surface in the final few of weeks leading into expiration.
On April 1st, 2010, one year ago today, Option Pit Option Mentoring officially incorporated in the State of Illinois. In that time, OptionPit.com has had many thousands of visitors
For starter's yesterday's blog caused quite a stir.
As many of you know, I spend a chunk of my time looking at SPX volatility...almost to the point of obsession.
One of the questions I get from my option mentoring students periodically is, "How do dividend plays work?" Here is how: