May 22, 2017

Get Ready to Sell Premium

Ah yes…Mr. Market finally answered our repeated requests for a return to volatility. The VIX popped to levels not seen since mid-April. Hopefully, the surge continues. I would absolutely love to see the VIX kick up over 20 or even 25. The push lower today also helped out all of our August expiration trades. And as I have stated over the past few days…subscribers expect to see a wave of trades going forward. Now that volatility is back there should be plenty of opportunities to sell options using high-probability strategies like vertical spreads, iron condors and selling puts.

I do expect to see a push higher over the short-term in most of the ETFs we follow. As you can see in the High-Probability, Mean-Reversion Options Indicator below most of the ETFs are in an extreme oversold state. However, this should only serve to give us a better opportunity to sell a few bear call spreads or iron condors.

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If you are a believer in a statistical approach towards investing please do not hesitate to try my options strategies. I use simple mean-reversion coupled with probabilities for each and every trade. Give it a try, it’s free for 30 days.

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