Tech is still where it’s at with most of the big names reporting earnings beats. Even lowly TWTR managed to squeak out a big move up now that profitability looks much more likely. Long term IV is still cheap in there. Evaluating volatility and position structure is a learned skill and that is what we teach in our Gold Course.
For a few moments today VIX went backward and traders decided to worry about a tax plan, ECB rate hikes, FANG earnings and whatever else ails a screaming stock market all at once. I don’t see many backward to VIX cash markets at 13 VIX but we had one today. Usually VIX traders have a reason to let VIX cash fly.
Not so quietly GE has fallen from the low 30’s into the low 20’s with SPX and INDU making all-time highs. Massive asset sales could be on the block and the equally massive 4.4% TTM dividend could be on the block too. I think most of the weakness in GE is centered on those issues. Option Pit is giving a free credit spread webinar tonight so this is an inkling of that. And no GE will not be the topic.