You will find clear price targets for both SPX and SPY. We also include our daily trading strategy. This strategy lists the options we plan to trade, entry limits, profit targets, and stop limits. We keep it simple, buying either a put option or call option based upon our market forecast...
Barras and Malkhozov (2016) find deviations in the variance risk premium (VRP) derived from equity prices and SPX option prices, respectively, and attribute the divergence to the financial standing of option intermediaries. Furthermore, the equity-based VRP provides a better projection of future ...
it generates a 30-day forward projection of volatility. Traders use it as a means of anticipating how quickly prices change, The VIX is often seen
The prices for the nearest expiration of a VIX Index Product generally tend to move in relationship with movements in the VIX Index. However, this relationship may be undercut, depending on, for example, the amount of time to expiration for the VIX Index Product and on supply and demand in...
If you are not familiar with the important differences between these option styles, check out this post. I recommend NEVER holding RUT options into settlement Friday to avoid settlement risk. Assignment Risk Some investors use call or put spreads in IRAs. Some use bull spreads and some bear...