Nasdaq Is Hiding This…

Hey there traders,

One thing I always say is that implied volatility is relative.

What might seem like ‘low volatility’ could be extremely high if the underlying won’t move.

On the flip side, if the underlying is running around like mad, historically high implied volatility might be too cheap.

Looking at the major ETFs, there is one ETF that has low volatility…

Even as it has high implied volatility historically.

The QQQ:

While QQQ IV is still over 30, the underlying is moving around so much it might not matter.

Thus, if I think the QQQ is going to make a move, I would be buying options, I would not be selling premium in the QQQ…

For now.

The VIX light is Yellow:  It could go either way, but it will move.

Your Only Option

Mark Sebastian

  • DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees do not offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 
  • Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Option Pit LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute a solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
  • To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Use caution when entering any option transaction and it is recommended you consult with your financial advisor for investment, legal or tax advice relating to options transactions.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.