VIX Index Analysis Revealing Its Fatal Flaws

The VIX cannot be trusted

Why the VIX Index may be Flawed (Street View) In my last post, Financial Markets Outlook for 2017, I covered this topic, but only in broad terms. In this post, I’m making my Case, with a deep dive into the VIX Index and Risk Analysis, in order to “convince” you why the VIX cannot be trusted anymore and you need…

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What are the Option Greeks

Option Greeks explained

Option Greeks explained If you’re somewhat new to Options, you must have heard about the Option Greeks. In fact, a common rookie mistake with Options traders is that they ignore the Greeks. In this post, hopefully, I can convey the importance of Option Greeks explained in simple terms. This is easily one of the biggest mistakes a newbie…

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Understanding the VIX – Free Course

  Free Vix Course – Understanding the VIX, aka Fear Index As a member of the OptionTiger community, I’d like to offer you the VIX mini-course for FREE.  Its a 1-hour long course and explains the impact of VIX levels on Option Prices, and rapidly changing sets of Trade strategies, for these conditions. Critically, what happens during a Crisis to Option…

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Twitter IPO

The big news in the IPO and Social Media worlds is the Twitter IPO. Twitter is of course one of the social media’s stars, and some would argue, is the predominant method of breaking news dissemination around the world.

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Free 30-days of Trading Ideas

Thus far, the Trading Ideas service in September has produced returns between 15% and 70% on every trade, except one – CMG where we cut our losses to 2%.

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GOOG Bear Call gone awfully bad…

Options Trading examples

In the Trading Ideas service, we put this GOOG Bear Call at 820 / 830 two weeks ago when GOOG was at around 785.

It moved up steadily, and we did 2 adjustments.

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Trading AAPL Earnings today

Straddles and explosive Volatility

Apple ($AAPL) releases quarterly earnings after the closing bell today. Most traders intent on trading $AAPL earnings rush to the Option series closest to the earnings event because the “uncertainty” around the earnings event marks up the premium of these Options. It is tempting to sell premium in this series because Implied Volatility is so high, and premiums are juicy.

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Apple Volatility looks to increase before earnings – Nov Straddle looks good

AAPL-Volatility

Apple (AAPL) releases earnings on Oct 25th, in about 2 weeks. What trade could you put on right now with relatively low risk ? Lets first take a look at AAPL Volatility in the chart below (from iVolatility.com).

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