Option 911 Blog — Trading Problems? Option 911 to the rescue!

Relative Value of the RUT, SPX, and NDX-no news on CROX

With the employment report due out tomorrow it is no surprise that the IV in the NDX, the OEX, and the SPX were relatively constant. What confuses me is why RUT implied volatility got hammered so much. Despite being the “whippiest” of the indexes, the RVX-VIX spread and the RVX-VXN spread are at [...]

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Guess who got a column at SFO, Market Talk, CROX update

That is right option911 readers! Starting March 11th you traders can find my bi-weekly column at SFO Magazine. I will be talking about that day’s option activity as well as general market trends. It will be a different approach to what i write here, but I promise my readers will enjoy it.
The Markets [...]

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RVX Contrary Signals an official Confirm? CROX Trade

There was a period today where I thought my whole premise of yesterday’s post may be incorrect. I pointed out yesterday that the RVX was predicting an up-in-coming RUT selloff. At the point of my greatest doubt the RUT was up several points and the RVX was off over half a percentage point. [...]

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Why the RUT is an Awful Sale

As a mentor the product that my students love to trade more than any other product is probably the Russell 2000 index, the RUT. However, I have been expressing to many of my students that the RUT is a very dangerous sale right now. That is because the RUT has been flying. [...]

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MAIL TIME!

It is that time again. Every trader’s favorite time. MAIL TIME!!!!!
Dear Mark,
1) I your article you say will “I always spend about 5% of my total premium collected on some cheap puts less than 25 cents…..if you are trading the futures or some other index is there a certain delta value [...]

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Last Chance for Special Price on Expiring Monthly – VIX Weekend Affect Explained

Traders,
On Sunday February 28th, the special pre launch price of expiring monthly will be gone. If you like what I write or, what Bill over at VIXandMORE , Adam of the Daily Options Report, Mark at Options for Rookies, or Jared and Condor Options writes this is the magazine for you. There are [...]

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SPX turnaround, Gamma Scalping Contest

I know I was going to get into some long gamma spreads tonight, but I got really caught up with the new born. Plus an old friend stopped by for dinner. Thus, I’m going to give a quick comment on today, and then invite you guys to come up with some ideas on [...]

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What if I Missed Yesterday’s Webinar for SFO?

Missed my webinar yesterday? Find it here: SFO Webinar
More to come later tonight!

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SPX Back Up, VIX back down, Put Skew

The SPX is right back to rallying after taking a day off to remind the public it can drop a standard deviation in a day if it feels like it. In the process the VIX gave back almost the entire gain from yesterday. We are getting to the point where the VIX may [...]

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VIX up 6.5% SEB fear index down. SPX Lines Up for Trade

Yesterday was a little bit odd; the market was down 14 points or 1.2%. Implied volatility was up about 6.5% based on the 1.31 increase in the VIX. Yet, at no second during the day did I feel the fear build up in my bones that I get when we are heading into [...]

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