AM Pit Report LIVE Every Market Morning : Watch It Now

Presented By

As Seen On

Stock and Index Options Trading and Mentoring for Option Traders

Our Founder's Most Recent Video

From the Trading Blog

I was expecting maybe more fireworks out of the FOMC but got very little.  The Fed will unwind their balance sheet by the time I am 82.  That reminds me of the old cathedrals that took generations to build where the father passed on the skills to the son.  Now we just pass our debt to the next generation.  Either way VIX closed sub 10 for the first time that I can remember on a FOMC day.  The rate picture is clear for near forever in market terms.


On a down vol day, AAPL IV perked up a bit.  The hype surrounding the iPhone1000 (as in price tag) has petered out and AAPL is trading a bit lower than the blowout earnings day last cycle.  IV in the 20 handle is usually a good short term sale in AAPL.  You can sell Oct put spreads right at the pre-earnings level  now.  I am guessing that the iWatch issue that drove down the stock is not worth $50 billion in market cap to $148 or so.

The Trade

Selling AAPL Oct20 148 puts and below looks yummy right now.  Short put spreads make the risk palatable.

If you want to learn to price option volatility and make better trades, check out our complete Gold Course here.

Follow Andrew@optionvol

Follow Mark@optionpit

Disclosure: AAPL positions

Option Pit has taken a very complex business, options trading, and broken it down in a way that simplifies my chances for success. Dan Stern

Get A strong Foundation

Q: "I've" lost money almost every time I trade options. How is what I'll learn at Option Pit any different?"

Continue reading...

Trade Your Plan

Q: "How can I pick the best options strategy to fit what is happening in the markets right now?"

Find it Now

Build From There

Q: "How can I put the pieces together and really make money trading? It's time to go beyond a book."

You CAN do it