Do you believe retail traders who have never experienced anything bad in their life? Who will run for the hills when volatility gets scary? No! It will get harder before it gets back to normal. And there are pro’s like me that are here to help and my live track record proves it. It’s that simple. Click here to join us.
If it is time to sell options…
the answer for a lot of names is no.
Here is a quick example of how UNDERPRICED options premiums are in some sectors.
Take a look at the HV for the financial sector ETF.
HV (sometimes called realized volatility) is every line in this chart EXCEPT the red one.
The red line is implied volatility (IV).
Notice that the IV seems high, relative to recent IV’s.
But when you look at how much it costs to buy premium (IV) relative to how much realized volatility (HV) there has been…
IV is cheap.
If I pull up most of the sector ETFs, they ALL look this way.
Some more than others.
Right now the cheapest options appear to be in ‘old economy’ ETFs:
XLI, XLF, XLE, and XLB
The VIX Traffic Light is Green. This means VIX could continue to get bid up.
It’s the market intraday price action that is messing with this…
Your Only Option,
Mark Sebastian
P.S. – All these young traders don’t take the half a second to learn to check things like how expensive or cheap something is. They just run right into the fire without thinking for half a second. My experience doesn’t just save you money…yes it makes you money! Sharp B.E.T.S. gives you the market maker edge. The only smart money that’s winning right now! Click here to get it.
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