The time to be complacent and unhedged is over. With the S&P 500 nearing all-time highs and the VIX lower, it's time to take advantage of cheaper portfolio insurance.
I think the stock has found a floor and want to buy slightly out-of-the-money calls.
Our analysts at The Deal have been following this story closely. Let's take a look at some potential options trades around the transaction.
Are you in trade that actually makes sense holding?
If there is a chance the deal could go out at a higher price or rejected, we will see it in the options market.
There are some smart arb trades out there and this is one that I like.
As a long-term buy and hold, VXX is doomed by its future carry risk, but in the immediate, the product can be used effectively to trade and manage volatility.
Right now the SPX and VIX are presenting the market with an incredible opportunity.
I think Apple and Facebook are due for a dive based on skew structure in front of earnings.
When it comes to event trading it always pays to wait, and/or take the sure money.