Trade Alert on SPY vol structure

Discussion in 'Options' started by ajacobson, Mar 14, 2020.

  1. ajacobson

    ajacobson

    spy implied current.jpg
     
    ironchef and TooEffingOld like this.
  2. so sell puts?
     
  3. Ayn Rand

    Ayn Rand

    At first I thought you meant volume. Would have really appreciated an analysis of changes in vol over the last 2 weeks. But I suspect that vol = volatility.

    If you were presented with the graphs above how would you use the information contained to influence your trading?

    If it means there is more volatility now then before I know that. However, if you can tell me where the volatility is coming from that would be appreciated.

    Also how are you measuring implied volatility. Some use a form of bid ask spread. Some use a value that makes their option pricing model work all other things remaining the same - ceteris paribus.
     
  4. ironchef

    ironchef

    Great post. Thank you.

    Looks more like 2018 than 2008. Let's hope the recovery is similar.
     
  5. ironchef

    ironchef

    Not a bad thought.
     
  6. jamesbp

    jamesbp

    Selling OTM Calls at high IV all the way down has been a good trade
    ... I seem to remember it working well back in 2009

    As an example, Index Vols for Dec20 are 45% ( compared with normal levels of 15% )
    ... Calls that are 20% OTM ... are attractive ... if your assumption is that Vols will fall substantially on any rally
     
    nooby_mcnoob likes this.
  7. Ayn Rand

    Ayn Rand

    Do you guys actually trade size? Based on current information no one know what is going on.

    I would suspect down on the open - ceteris paribus.

    Anything could happen between now an then.
     
  8. pelman08

    pelman08

    Selling Vol seems like a nice idea over and buying a calendar on SPY also seem like a nice idea only problem is that vol might continue to go up even more given the fact that there is still plenty of uncertainty within the markets . I think those graphs are pretty significant but I do not believe there is a trade here