Fred Ruffy says we are seeing an increase in implied volatility across the entire market. He notes some defensive, or hedging, activity in terms of individual options contracts, reflecting a rise in bearish sentiment among traders.
Fred Ruffy says he will be watching the XLF select sector fund, which holds all financial-related stocks of the S&P 500, as we move into the second quarter. He says of all the exchange traded funds, the largest open interest positions are in the XLF April 16 and April 17 put options.
Fred Ruffy points out that trading volume has for the most part been below normal levels recently. Even though implied volatility has generally been low, there are some IV skews that traders can take advantage of with options.