As I stated today over at SFO magazine, when I say that the market has been flat, it’s not Déjà vu, it’s that the market has done nothing for many days in a row. It is very tempting for optio
I was working with an options mentoring student that had set up a weekly SPX butterfly that was working quite well. However, the options trader had one glaring issue.
One of the things I am constantly going over with my options mentoring students is how important the volatility surface is. They all know what a high skew is, and what a low skew is.
I have been talking about the term structure of the SPX for quite some time. Coming into the holiday season, most traders expect the front month to get have a depressed volatility.
Most option traders can get delta, and even the weighting factor. Gamma seems to be different; I often have new options mentoring students that do not have a full grasp of how gamma works.
While I am not an Option Mentor, deep down I am a floor trader at heart.
Once I have been working with an options mentoring student for a little while they can usually figure out how to properly set up a trade.
I sat and listened as a CNBC commentator noticed how much the fear index (VIX) was up today.