I thought I would take a brief respite from talking about his market that is doing nothing (traders who sold volatility this morning are happy) to discuss a few ways to structure a GOOG-BIDU Spread.
Today’s sell down seems more typical of the way the market has rallied than the way it has dropped. Over the last few months when the market has fallen it has fallen hard and fast.
As the markets sit and sit here, the IV's are holding up surprisingly well, right now. However, I would begin to keep an eye out for the weekend melt, especially in March options.
The market shrugged off this morning’s bad news on the backs of the financials. There seems to be report after report about the positioning of the big banks if the economy starts to turn around.
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