Disclaimer

Disclaimer: The information found on this site is meant for educational and informational purposes only. Nothing on this site should be construed as a recommendation or solicitation to buy or sell derivatives or securities or to trade any particular strategy. Trading of derivatives or securities has large potential risk and you must be aware of and accept all the risks. Past performance of any trading system or methodology is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve performance results similar to those discussed on this website. Hypothetical or simulated performance results have certain limitations and do not represent actual trading.

Thursday, November 25, 2010

SPY 117.5 - 123, Trading Range Scenario Ongoing



-Despite some volatile up & down movement, SPY is moving as was expected back on 11/17/10, within a trading range, and given the environment of rising uncertainty abroad with improving economic fundamentals here in the U.S., I would think that the 117.5 - 123 trading range for the remainder of the year is the likely scenario.

-And perhaps, this scenario is what options investors are betting as the likely scenario as well, since mean implied volatility index is 16.43% versus 19.8 figure shown by Fair Volatility Estimate Indicator. Even when taking into account Thanksgiving holiday and the weekend, implied volatility seems low when compared to the way SPY is moving.

No comments:

Post a Comment