Sea of Red
Sea of Red
Aqumin had a successful launch of our AV Professional Beta last Thursday and I want to thank all of our Beta Testers. Here is a simple way to use AlphaVision Pro to look at the holiday action (or lack of it) using the Option Landscape for the SPY.
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For traders new to options the Christmas holidays mark a generally illiquid time as the market takes a week or so off. I use the Option Landscape to take a look at the S&P 500 ETF (SPY). Note below you see mostly red buildings (each building height is the current implied volatility) which signals drops in implied volatility for most call options in the SPY around the 125 handle. I show the Mid Vol point of the SPY around 11.54% for the Dec Quarterlies. That seems cheap until you look at the 14 Day Historical (Realized) of the SPY itself. That number is a single digit.
The underlying market will need to pick up to the end of the year to support even these lower Implied Volatility levels.
Snapshot taken at Dec 22nd at 10am ET.
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About Andrew Giovinazzi
Andrew Giovinazzi was a member of both the Pacific Exchange and the Chicago Board Options Exchange where he made markets in both equity and index option classes. During that period he never had a down year. In 1991, Andrew started and ran the Designated Primary Market Maker post for Group One, ltd in Chicago. He was instrumental in creating and managing a training program that allowed Group One, ltd. to significantly grow the company. He left Group One, ltd. to co-found Henry Capital Management in 2001. He became Chief Options Strategist of Option Pit Mentoring in the Fall of 2011. Andrew has a Bachelor's degree from the University of California, Santa Cruz in Economics.
To learn more about Option Pit and their mentoring services, please visit: http://www.optionpit.com/mentoring
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