We just had a 25 point down move in the /ES. Implied volatility jumped up to 13 (a level still below the mean), and the markets started looking slightly bearish. A lot of options traders have been caught short the market, due to the low volatility. Therefore, large up moves are not always easy to stand for many professional options traders. I only have one warning. Do not get over excited. The markets are not showing signs of crashing down. However, volatility is slowly rising. As I said before, the markets will go down with everyone least expects it. I only say do not get over excited, but as earnings season is back, there is volatility back on the board. My own personal hope is the VIX slowly creeps up, and causes some panic. We then will see much more interest in the markets. I will leave you with a few interesting stocks. DOW, FB, and TWTR. I have been playing these stocks like crazy with all this high volatility. I have also amassed some pretty large positions. I continue to sell weekly directional premium in these while being short iron condors in the back month (FEB 38 days to expiration). However, it is easy to get too big. The most promising of three right now is TWTR. I would give it until earnings for great opportunity, and after then the volatility most likely get crushed. I would still like to be able to play TWTR for a while, if possible.
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