Option Scanner Pro will tell you where the huge option volume action is taking place. Your explanation of the log normal distribution LGD is wrong. I'm not sure how to solve this question. Implied volatility represents the consensus of the marketplace as to the future level of stock price volatility or the probability of reaching a specific price segvices. Reverse the existing short call spread into a long call spread.
Jump option spread trading services navigation Sign Up for the Webinar of the Month Sign Up for the Webinar of the Month You can sign up for the Weekly Wheel HERE You can sign up for the Weekly Wheel HERE It appears the rally in the financials is not dead after all. While the hyperbolic move is over there is substantial pullback from the near term highs. The good news is that the near term vol jumps in front of the earnings vol.
One of my favorite time spreads is to buy earnings juice and sell near term juice for flat or better vol. BAC Weekly vol are trading very near the earnings cyole vol which sets up well for a time spread or calendar. The earnings juice decays at a fraction of the normal level so the Weekly sale brings amplified or accelerate decay. That way one can back into cheap calls into earnings. Double calendars not too bad either. You can sign up for the Weekly Wheel HERE You can sign up for the Weekly Wheel HERE Get a FREE copy of our book to help you understand the options market better than ever before.
Morning Vol Report VIX moves on DC machinations. Morning Vol Report- Option spread trading services is dead, long live Vol. Morning Vol Report TSLA and the VIX. Sign Up for the Webinar of the Month. Option Pit Trade Idea of the Week: SPY. Morning Vol Report VIX easier to jump than drop. You can sign up for the Weekly Wheel HERE. Time spreads to BAC on. It appears the rally in the financials is not dead after all.
Disclosure: multiple long positions in financial stocks. Morning Vol Report Tech fun! Morning Vol Report SPX IV is way down.
Trading Options: Calendar Spread (Setting Up the Calendar)
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