Prior to the reverse split I (rightly) predicted that the stock was going to have a rough go of it over the next few weeks. I held a C 4.5 puts.
You can watch Mark explain how to pick the right adjustment for a butterfly right here:
Many of my options mentoring students are trying to figure out why SPX and IV are falling at the same time like this:
Since the end of 2008, despite much talk of a turbulent market the VIX has been heading on an almost perfect down slope:
For the second out of three days,, we have seen the market take a nice dive, and the VIX act as if it could not care less. What gives? Yes IV was 'up' today, but barely, an only in one
Today, during one of my option mentoring sessions an options mentoring student asked me about going long or short. Specifically, we were look at Netflix.
First some business:
One of the things I am constantly trying to point out to traders is how poorly pricing models are as options head toward expiration.
Option Traders, I don't know about you, but many option mentoring students are constantly bemoaning how low implied volatility is. Here is a question for you though, is it that low?
When I asked on Wednesday if the VIX had topped out, the market responded with a resounding "NO!" Since Wednesday, we have seen