term structure

VIX Futures Not Exactly a Harbinger of Bad Things

Posted by acparis on Tue, 01/10/2012 - 8:36pm

We will be having the second free webinar in our using the VIX to trade series. Go to our EVENTS page to register. Also, make sure to read the Option Pit Challenge below: As I was looking at the VIX trading relative to the SPX, I was struck by a few things: 1. While the VIX really threatened to break 20, it never did. The VIX rallied toward the end of the day, which shows there are some buyers of insurance that are willing to step in and buy insurance with the VIX at 20.00

SPX IV Getting Interesting, Skew, Term Structure Moving

Posted by msebastian on Mon, 06/13/2011 - 6:12pm

While I do not think anyone would call today a fearful session on any level.

SPX IV Flat...Again. VIX Term Structure Getting Interesting

Posted by msebastian on Sun, 06/12/2011 - 1:17pm

The VIX may have gained a little more than 1%, something those in the media will point toward as an increase in fear. As I look at volatility I do not seem much of an uptick at all.

S&P 500 Term Structure is Extremely Negative

Posted by acparis on Tue, 04/05/2011 - 3:29pm

When I explain to my option mentoring students that just because implied volatility is low, doesn't mean that a calendar is a good idea...its days like today that I am thinking about.

How Does Volatility Today compare to Just Before the Flash Crash

Posted by msebastian on Tue, 02/08/2011 - 7:45pm

As many of you option traders know, the VIX closed at the lowest point since April 20th, 2010.

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 Term Structure getting out of Whack, AAPL Weekly Update

Posted by msebastian on Thu, 09/02/2010 - 4:53pm

At Option Pit we have been discussing with our the main focus of discussion between our option mentoring students is how we think we are on the uptrend of a slow downward oscillation.

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.