I was recently working with a newer option mentoring student explaining term structure. He pointed out to me this graph:
As many of you option traders know, the VIX closed at the lowest point since April 20th, 2010.
One of the trades many of my option mentoring students are really paying attention to are put ratio spreads (by the way if you haven't read this http://www.optionpit.com/blog/implied-volat
Recently, I received an email from Mark Wolfinger of Options for Rookies asking me my thoughts on this question. I thought it was a great question, b
One of the biggest differences between Option Pit and other mentoring services is the way we teach our students to approach trading.
We look at our trades, discuss tomorrow's earnings and look at GMCR and OEX
This just in, when volatility pops, calendars tend to lose and lose big.
It is common knowledge to most traders that when the market rallies implied volatility tends to fall.
With the continued turmoil in Egypt the market has seen a nice uptick in implied.