This is how a massive VXX trade turned into an even bigger loser when looking at the options alone.
The whole concept of 'dynamically hedging your position' goes out the window in a gap like we saw with the early earnings release.
Trading in VIX products has been very heavy, but the term structure of the VIX futures market indicates an expectation that things will settle down by November.
Looking at M&A stories, earnings plays and signs of increasing activist interest (or disinterest) can help spot trading ideas and opportunities.
Exactly two years ago the Chicago Board Options Exchange launched a new index options product that matched the market-leading S&P500 option specs except for two important factors.
Is this the end of the bubble-like run for TSLA shares? Here are some clues from the options market and a potential play for the speculative traders.
Let's review a case example using SPY quarterly options.
One way to see the dire concern om JC Penney's shares is in a sharply increasing implied volatility and put/call skew.
Some players in the options market seem concerned that financials might falter in the months ahead, as XLF saw a surge of put activity on Friday.
A new position in INTC seems to be expressing a very bearish view on the stock for the next few weeks.