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.

Monday, January 31, 2011

Stay Long SPY Volatility


- Mean implied volatility on SPY options increased to 16.83 from 14.6 on Jan 20th when I recommended to buy volatility. FVE indicator's value rose from 13 to 14.8 during the same time. Although implied volatility is above the FVE indicator's value, the FVE indicator remains above its moving average so I would not yet take profits on long options, long volatility positions.
- All my indicators are pointing to higher probability of SPY correction than they were a week ago, although SPY price trend is still bullish. I feel comfortable in my current options position.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)