butterfly

Break SPX-VIX in Correlation Slightly Troubling

Posted by msebastian on Wed, 01/11/2012 - 11:41pm
We will be having the second free webinar in our using the VIX to trade series.

VIX Movement Normal, Curve in Good Shape

Posted by acparis on Tue, 01/03/2012 - 4:45pm
As I was giving the AM Vol Report today, many an option trader asked me about the price action of the VIX.  Was the fact that the VIX was barely down but the SPX was up a huge sign of a market not 'buying into' a rally.  Sometimes the answer is yes.  I gave a great VIX webinar last month where I explained how I use VIX to help me trade S&P Futures, SPY, and other directional plays.  However, today we are not looking at that situation at all, despite the ATM IV being flat: SPX 1275  

Is the CME the real MF Global causualty?

Posted by atg on Thu, 11/10/2011 - 6:15pm
Is the CME the real MF Global casualty?

AAPL Iron Butterfly Might Be Interesting

Posted by msebastian on Wed, 11/02/2011 - 10:35pm
As I looked at AAPL on LiveVolPro today, I noticed something interesting.  It was a possible split strike butterfly play.

What To Expect When You Expect Nothing

Posted by msebastian on Wed, 12/22/2010 - 8:05pm
I have spent the past few days explaining to you option traders that the next two weeks might not be the best time to be short premium.  While I believe this to be true, I do not want you trad

AM Pit Report 11/22

We talk about the market, the week ahead, and we look at our OEX condor and SPY butterfly

How would did an SPX Butterfly Perform if Traded Thursday?

Posted by msebastian on Fri, 09/24/2010 - 7:35pm
Option traders, at Option Pit we tell our option mentoring students that it is important to understand how skew make a trade more or less favorable.

Butterfly Trading Checklist: How to tell the right time to enter an Index Butterfly

Posted by msebastian on Mon, 09/13/2010 - 7:32pm
Option mentoring is not an easy business. Our option mentoring students are always looking for easy simple answers to very complicated questions.

SPX SEP-OCT Spread is wide. How does IV compare to 2008?

Posted by msebastian on Fri, 08/13/2010 - 4:08pm
As a market maker and now a mentor, I have had a plenty of time to look at implied volatilities. In fact, that is basically all I do.