Good Morning Option Traders. My morning comment can be found at
The markets closed with contradicting signs across the board take a look:
[caption id="attachment_1807" align="alignnone" width="150" caption="The Major Indexes were up less than the IV indexes"]
Across the board the broad market indexes and the major volatility indexes are both up.
I am not much of a charter; however, the SPX is about 4 points away from the year high. Personally, I believe the market is mostly psychological and somewhat fundamental.
Today's late day sell down did not evolve into the serious selloff bears have been holding out for. However, it was certainly a good sign for all the shorts out there.
After several of the indexes were up almost a full standard deviation mid-day, the markets have turned around this afternoon.
It has been exactly one year since the markets bottomed out after the disaster of 2008. Since March 9th, 2009 the SPX is up over 70%, the NDX 81% and the RUT is up almost 97%.
The indexes continued their win streaks again today.
With the RUT trading below at 16 dollars I finally decided to jump in. I bought 1 RUT 1670 in my live account (I will not be discussing that trade).
The market IV indicators are reading up so IV must be up right? Not necessarily, as we all know there is a built in pop in the VIX, VXN, RVX, and VXO on a Monday morning.
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