As options income traders, we’re always looking for edge. Normally we like to look for edge in technical analysis, volatility, and strategies. While I certainly agree that all of those things help, the reality is that, as long as we’re the ones sending the orders, some portion of edge comes back to us. Trading and […]
In a word, no . . . The other day I presented the CIB to the Capital Discussions audience. One of the things I mentioned is that it seems like the CIB tends to benefit from an increase in Implied Volatility despite the fact that it’s a negative Vega trade. Based on a few anecdotal […]
“Every month is a great month for an Iron Condor!” False. Options income traders frequently want to throw on the same trade every month. Sometimes they make slight adjustments for market conditions or volatility, but the reality is that it’s essential to understand the markets you’re trading. The volatility characteristics of different markets can present […]
On Friday the S&P 500 ($SPX) closed at an all time high while the Volatility Index ($VIX) went into the weekend just under 15. While a value of 15 isn’t incredibly low, it is on the lower end of the 3 month range. While everything looks great on the surface, other measures of volatility might […]