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The markets did little to nothing today. This caused IV to fall across the board (yes the VXO said it was up, but really VOL was in).
We ended up being right (despite a few days of turbulence). The calls are basically worthless, and the spread has a return of over 30%.
Implied volatility is certainly coming in, how is my SPX 950-1210 strangle doing? Not bad, we have made about 3.50 on the strangle, that is not a bad return. But I think the VXX will fall to 25.
I wrote today's daily SFO column: SFO Magazine
We did not receive a ton of great ideas on what is the right trade, under the circumstances, so here are my thoughts:
At Option Pit, I talk clients all the time. Some say how crazy the market is, and how volatile the general market is.
I will be back with more later.
Following order flow, if done correctly, can help a trader make (or not lose) quite a bit of money.
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