VIX Not Too Low to Sell Premium


Robert Lang

 | Jun 27, 2014 | 11:00 AM EDT
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We have spoken in the past about the virtues of selling premium. Certainly in a low-volatility environment with cheap options, it seems as though we are not getting the bang for our buck as sellers. But what compensates for the lack of premium is a vote of confidence in the direction and the trend of the markets.

A low-volatility reading implies much lower expectations of a big move up or down, and lately it has been that way with very narrow price ranges all day long. Just this week the S&P futures traded within the smallest range in many years (only 4 handles)....286 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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