Goldman Says Naptime For Put Sales
Goldman Sachs is out today telling clients that put selling, one of the greatest trades on Wall Street since 2009, is no longer as attractive.
“While we continue to expect one-month put selling to be profitable, we see risks as balanced. Over the past six trading days, the VIX has declined five-points to 17 and the SPX is up 3% to 2052. We estimate the attractiveness of one-month 5% (out-of-the-money) SPX put selling is at median levels relative to the past 18 years,” the bank’s derivatives strategists wrote portfolio managers in a recent advisory.
The balanced risk statement reflects the stock market’s increasingly whippy nature as it gets pushed around by major macro-news including... [Read more]
Obama Pledges to Veto Measures Weakening Dodd-Frank
President Barack Obama pledged to veto any legislation that weakens new curbs on Wall Street as banks and the Republican-led Congress increasingly seek to roll back the Dodd-Frank financial-regulation law.
Obama included the message in his State of the Union speech Tuesday after the House approved a measure last week that would loosen some restrictions in the 2010 law. His remarks also come as Wall Street re-emerges as a force in Washington, having successfully attached one of its top legislative goals to a government spending bill that lawmakers approved at the end of last year.
“We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or re-fighting past battles on immigration when we’ve got a system to fix,” Obama said. “If a bill comes to my desk that tries to do any of these things, it will earn my veto.”
Congress approved Dodd-Frank in response... [Read more]
Creator of VIX Options is (Finally) Creating a new ETF that Tracks the Spot VIX
I've been saying for years that the VIX options and futures currently in existence don't work right and are misused by most investors. It looks like Robert Whaley, the creator of VIX options agrees. This article is a must read for any volatlity trader.
Article Courtesy of ETF TrendsIn 1993, the year the first U.S. ETF was launched, there was also another monumental introduction.Robert Whaley was an established expert in derivative contract valuation and risk management. In 1993, Whaley developed the CBOE Market Volatility Index “VIX” for the Chicago Board Options Exchange. He went on... [Read more]
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