Will the summer generate a volatility event?

Will the summer generate a volatility event?   Well it is one week until we have the Option Pit “Fixing Terrible Trades” webinar.  It is free for all Option Pit subscribers so this is a good opportunity to sign up for a trial.  I can remember a lot of summers sitting in a pit with […]

Why Option Pit Does Not Sell Earnings Option Premium

Why Option Pit Does Not Sell Earnings Option Premium Options juice around earnings is, well, juicy. By juice I mean the level of volatility in the options or the extrinsic value of the option above parity.  The earnings are a 1 day shot but Black-Scholes wants volatility over a longer period of time, namely an […]

VIX Made Easy

Easily the most confusing product in the option world is the VIX.  I know because Option Pit spends a fair amount of time teaching people about it and the oddness of the VIX products creates a lot of opportunity.  I will address a simple VIX anomaly today hope that clears up a thing or two. […]