11:00 P.M. 7-Apr
There was an interesting combination of factors today on the market today, at least with SPY and $VIX/ VXX. Volume on SPY was quite low today as SPY dropped--is this because of the holiday weekend coming up, or are people staying on the sidelines expecting more givebacks from the recent rally? In spite of a 2% drop in SPY the $VIX index did not act particularly fearful. Do the options traders know something we don't?
The Asian markets are off pretty strongly at 11:00 PM MT. My guess is that the US markets will open down substantially in the morning.
Update 7:30 AM 8-April
Spy opened up approx $0.50 this morning. It appears that the VXX/VIX were better predictors than the Asian stock market or the low volume yesterday. Made a 80.22 Debit order on Buy-Write of SPY and April 80 calls. Tried to make the order with Fidelities advanced options debit order function, but it was not working well. I saw the debit price go well below my asking price without triggering--that's what you get when you have actual humans involved.
Premium was about $1.80 with 10 days left which gives 2.2% on the order.
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