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.
There are three components affecting the VIX after the employment report.
1. There is more certainty in the market place. This is responsible for some of the drop in the VIX.
With the employment report due out tomorrow it is no surprise that the IV in the NDX, the OEX, and the SPX were relatively constant.
That is right option911 readers! Starting March 11th you traders can find my bi-weekly column at SFO Magazine.
As a mentor the product that my students love to trade more than any other product is probably the Russell 2000 index, the RUT.
On Sunday February 28th, the special pre launch price of expiring monthly will be gone.
I know I was going to get into some long gamma spreads tonight, but I got really caught up with the new born. Plus an old friend stopped by for dinner.