CL

KMB Option IV Is Sky High

Submitted by msebastian on Wed, 03/06/2013 - 5:48pm

The entire Consumer Cyclical sector is killing right now.  PG, CL, CLX and KMB are all at or near all-time high stock prices.  The industry is doing great as a whole; KMB in particular has had a great run higher.  Yet, something a little screwy is happening with Option IV in KMB.  Take a look at the 30 day IV from LiveVolPro of CL, CLX, KMB, and PG.  KMB is the green line:

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Livevol (R) www.livevol.com

Oil IV is Too Cheap

Submitted by msebastian on Tue, 10/09/2012 - 4:27pm

Bloomberg asked me to talk commodities today.  While not my strong point, I know enough about grains and oil to have a decent discussion with about anyone.  However, today was easy.  Here is why:

When I was on the train coming into work, I was thinking to myself that OVX and its sister CVF have both had a bit of a rally.  I was going to talk about how expensive options were getting in WTI and in USO.  Then I sat down and looked at the actual vols close up.  For starters, USO IV is not that high.  

oil.png

Livevol (r) www.livevol.com

A Breakdown of the new OIL VIX Contract

Submitted by msebastian on Mon, 04/09/2012 - 5:13pm

It is our 2 year anniversary at Option Pit!!!  We encourage you to try our services out in the coming weeks, we will be offering the best deals on our products that we will all year, call us (888) Trade-01 to find out more details or email us mark@optionpit.com.  If you are just looking to try us out, you can get a one week trial for only .01!  Go to http://www.optionpit.com/bull

I have to admit, there are very few traders that are as excited as me that the CBOE is relaunching options and futures on GVZ and OVX.  While I like VIX, I think it has some flaws to it that possibly make the product more difficult to use as a hedge:

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