With VIX popping to >15 on Friday, my usual pattern is to rotate out of individual underlyings and into broad market instruments like SPY/SPX, IWM/RUT, etc. VIX ended the day at 16.2, and it could naturally settle back below 15, so I need to be prepp'd for either selling premium in broad index instruments if VIX sticks in there above 15 or playing a few higher volatility individuals around earnings if VIX friskiness fades.
I did hastily slap on an IWM, 3-wide iron condor in a December expiry on Friday, but wouldn't mind slapping on some more if this isn't the end of it for pre-election jitter volatility since I have virtually nothing on in broad-index plays.
For earnings alternatives, I'm looking for volatility contraction plays where the implied volatility is high in the range and high "in the background". Unfortunately, >70% 52-week high implied volatility rank and >50% implied volatility plays have been few and far between, so I've tweaked my screener to look for rank >70% over the preceding 6 months, as opposed to 52-weeks. Even then, only GILD, WFM, and BABA pop up as having a rank >60 (I'm being a little picky here, confining myself to the most liquid option plays), and those don't have a background implied volatility of >50%, so I'm unlikely to play any of those in the absence of a last minute pop in volatility.
Nevertheless, I will keep an eye on them "just in case" ... .
I did hastily slap on an IWM, 3-wide iron condor in a December expiry on Friday, but wouldn't mind slapping on some more if this isn't the end of it for pre-election jitter volatility since I have virtually nothing on in broad-index plays.
For earnings alternatives, I'm looking for volatility contraction plays where the implied volatility is high in the range and high "in the background". Unfortunately, >70% 52-week high implied volatility rank and >50% implied volatility plays have been few and far between, so I've tweaked my screener to look for rank >70% over the preceding 6 months, as opposed to 52-weeks. Even then, only GILD, WFM, and BABA pop up as having a rank >60 (I'm being a little picky here, confining myself to the most liquid option plays), and those don't have a background implied volatility of >50%, so I'm unlikely to play any of those in the absence of a last minute pop in volatility.
Nevertheless, I will keep an eye on them "just in case" ... .
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.