The market snapped back hard today. Rather than get into some analysis of what that could mean, or why it happened. Instead, I am going to discuss what conditions still exist and what option traders
Why would I pick a day like today to unveil our Logo and launch the information website for Option Pit?
Because the principles on which Option Pit was founded:
Trade Structure, Risk Man
The main driver behind this news is obviously the bailout of Greece. The Germans are mad they are bailing out the Greeks, and the Greeks are mad they are being bailed out.
I wrote today's daily SFO, check it out here: SFO Magazine
Traders that bought units are currently sitting on little gold mines.
Let's briefly discuss how much implied volatility was up then discuss what savvy traders were doing over the last few weeks and what they might be doing now.
Yesterday the SPX May 1175 Calls had an
It has been a crazy couple of weeks, the market has dropped 2 standard deviations twice and recovered (mostly) twice. Over the last week the market is only down about 10 points!!!!
I wrote a piece over the weekend on GRMN earnings, check it out here: OptionsZone
I guess we can conclude that I was a loser on my GS calls today. Hopefully traders followed my other idea of buying an off-center strangle instead of just calls.
On April 21st the SPX closed at 1205.94.
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