I think that the selling of premium into this small rally has been a bit overdone, even if IV is still a touch elevated in relative terms.
Option traders, one of the way's I judge where implied volatility is trading is to look at ATM straddles. In the SPX the straddle closed at just over 46 dollars:
Today, as I was preparing to be on Fast Money's Volatility Playbook (you can catch the replay here), I took notice of how hard implied
Mark will return to the office tomorrw. Also, you can look for him on CNBC's Fast Money tomorrow!
I’m writing this mid-day as I am on vacation this week. However, even at mid-day I am noticing a few trends in volatility that developed last week, persisting.
Option Traders, I was traveling most of the day.
I have been speaking about how the big firms have not been selling SPX premium into this sell off.
You can catch the replay of today's webinar. I made a special offer at the end, so its worth it to listen till the end.
Every day at least one of my option mentoirng students ask me where I think the VIX is going. The answer, of course, is I do not know.