|Day Low/High||104.84 / 108.43|
|52 Wk Low/High||104.43 / 139.00|
The days when the market sells off are cash cows for index options. Here's how to play them.
With the moves in the Volatility Index and the S&P, I'm betting this one goes below $90 in the near future.
People simply do not hedge as much when the VIX is 25 coming from 80.
With the end of TVIX, ownership in volatility trading ETPs needs another place to go.
Exchanges should be in a position to catch some nice upside if trading floors reopen.
There is a real chance to make some money out there if you have the cash -- and Disney is a perfect example of that.
What is crazy is the movement in names that have been winners up to now.
Commissions do cut into the customer's profits, so now with that removed we may see trading come alive even more with options.
Let's use the history of Cboe Global Markets Inc. as an example of how to recognize overvaluation and trade out before major pullbacks, potentially side-stepping declines.
Investors should consider a buy/write combination in order to take full advantage of the growth of CBOE Global Markets' stock price, while also building in some insurance against a move to the downside.
If the company can deliver its expected growth for 2019, a 16-month target of $111 seems quite appropriate.
A whistle-blower sounded the alarm Tuesday on alleged manipulation of the CBOE's VIX.
'Anything that makes VIX sound bad is bad for CBOE' has become overdone in the stock.
How do we examine what might be attractive when the selling madness really abates?
I expect an ETN on Bitcoin futures to start trading shortly, and for volumes in this to rise quickly.
Try these Oct 105 calls for about $1.75, and sell them when CBOE gets over $105.