This last weekend the option symbol transition coordinated by The Options Clearing Corporation completed, with the last set of symbols, starting with underlying symbols of S through Z, switched over to the new system. In almost all cases the 3 to 5 letter underlying symbol now works as the option identifier. I think the new system is a real improvement. I wish …
When updating the chart below, where the price and normalized volume of SPY from 2003/2004 intertwines with the SPY of 2009/2010, I noticed one area of consistent difference between the two time spans—volatility. Using the VIX index as a proxy for actual volatility, the ’09 / ’10 values have averaged about 40% higher than the ’03 / ’04 bull market. On the slight …
There is a lot of premium available on SPY options that will expire at the end of next week due to the recent market gyrations. I created a covered call, buying SPY at 117.26, selling-to-open May 117 calls at 1.69 for a net investment of 115.57. The Theta (time decay) on these options is $8 per day.
Did covered calls on Oil — bought USO at 37.19, sold-to-open May 37 calls at 1.02 for a net investment of 36.18. Created a bear spread on VIX options today. Betting on VIX going down is forecasting that the market in general will be flat or positive. I sold-to-open June VIX 16 calls at 10.26, bought June VIX 32.5 calls at 1.88 for a …
It’s 12:41AM Eastern time, 10-May-2010 and the Asian markets are up—evidently they are liking the central banks moves to shore up the Euro. I think Greece’s days in the Euro camp are numbered—maybe 6 to 18 months. The UK has shown that it is perfectly OK to be a member of the EU without being on the Euro, and I believe Germany and France …
