Looking to diversify

Discussion in 'Options' started by osho67, Jan 10, 2013.

  1. At the moment I sell options - (vertical spreads, iron condors, covered calls and naked puts) in SPX, NDX, XEO. RUT, DIA, SPY, IWM. and QQQ.

    I would like to diversify to some other products which are less co-related to the list above .

    Some suggestions much welcome with gratitude. Thanks
     
  2. Some things with low/negative spot correlations to the SP might be things like gold (low/none), bonds (slightly negative), and the vix (highly negative). You could look at gld, tlt, and vxx.

    This will be more effective if you have long SP delta exposure, then it might make sense to sell some vxx or tlt puts as a delta hedge, but it's also important to consider these might not be great hedges for a general increase in SP volatility as the IVs of each asset could rise in tandem. HTH.
     
  3. i'd stay away from the VXX unless you really have view on term structure and know its insides well... .. anything you would have to adjust the size based on the degree of correlation and i'm talking negative correlation of course respectively.. the volatility is different.. basically you have to estimate hedging params with the least amount of hedging error.. thats probably obvious though
     
  4. My aim is not probably for hedging purposes. I just want to increase more products in my basket.

    Can I find somewhere option volume rankings by products -may be monthly or daily ?

    Thanks
     
  5. Brighton

    Brighton