Option Traders, I know I have harped on this before; If a trader is past his goal for P&L or is close, consider exiting the trade on Friday.
Option traders, recently I have found that the VIX has been VERY range bound. THE MARKET HAS BEEN CRAZY you say? To the untrained option trader that may SEEM to be true, but in fact, we have been pretty stuck for the last month or so (as stated yesterday). If a trader looks at the VIX, l what should the option trader see?
Option Traders, where was the market on the close of last Wednesday? The SPX closed 1057.08. Where did the SPX close today?
Traders, a quick word with you; I have been mentoring for a while now and I am seeing a lot of the same problem. It seems that all of you guys like to over trade, hedge to early, hedge too often.
Option traders, I had a reader ask me why we lose Vega when volatility goes up. The option trader was asking if we still make money on the Vega we had.
Option Traders, I had a long discussion about weighted Vega with a student today. I soon realized there are a few things that many option traders do not understand about Vega in general.
Option Traders, I hope you like the new format of Option 911. I certainly do! Over the next few weeks we will be adding more and more features.
Option Traders, some rally today! M&A in a terrible market can really make the market feel good about itself. I think this was a touch of an over reaction.
Option Traders, I have to say, that I liked the small turnaround we had last week. I liked it because it was somewhat news driven. I liked it because it was orderly.
Option Traders, I'm writing this about 15 minutes before RIMM announces earnings.