The market continues the slog higher. But I think we all know how this ends, right?
We might not see a push lower for long, but the pullback is coming. The sectors that have led the short-term push higher are all in an overbought state now, which means it is a great time to start selling some bear call spreads. I was willing to sell vertical call spreads last week, so why wouldn’t I like them even better here?
The only problem is implied volatility. As many of you already know, volatility has reached a historic low which means options prices, thereby premium, is also low. However, that does not mean that opportunities aren’t abound. You just need to search a little harder to find meaningful trades.
You can start with the table below. If you would like discuss theoretical trades I encourage you to do so in the comments section below.
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.
Also, due to the enormous amount of requests over the past week I have decided to keep my annual deal available for several more days. Thanks again for all of the support.