Monday, January 31, 2011
Thursday, January 20, 2011
Thursday, January 6, 2011
- Most recent push up to 138.72 stopped short of GLD's previous high of 139.11. By Jan 22 expiration, the chance that GLD prices would go above 142 is very small. Now the question is will the Jan 132 puts be in the money by Jan 22 expiration? GLD is testing 133-134 support level once again.
- As for SPY, mean implied Volatility has dropped a point to 15% from 16% as of Monday morning's post. FVE indicator's value is 11.5. According to my indicators, implied volatility remains overvalued.
Monday, January 3, 2011
-FVE indicator's value is at 12.1, compared to mean implied volatility on SPY options of 16.12, according to IVolatility.com. As I expected last week, market makers would take profits and buy back their short options positions. This is probably the reason why implied volatility has risen over the past week, even though the market had remained quiet and unchanged.
-Some of my indicators are starting to show bullish energy subsiding, and SPY is due for a correction, but I feel implied volatility (although still at low levels) is overvalued.
-I would sell the Jan 22 120/129 strangle for 0.90 or better.