THE WEEK AHEAD -- NVDA, XRT, AND THE VIX
If you're a premium seller, you're probably doing a bit of hand-sitting here (again) with VIX again at sub-12 levels. There are, however, a few things that could prove productive ... .
NVDA: With a six-month implied volatility rank of 85% and general background implied volatility of 55%, it's ripe for a volatility contraction play. They announce earnings on Thursday after market close, so I'll look to put on a play on Thursday sometime before NY close. I'll post setups as we get closer ... .
XRT: If you're looking to sell premium in the broad market or in sector exchange-traded funds, well, you're largely out of luck. XRT, however, is one with relatively high implied volatility rank/implied volatility such that it might be worth a play, but I'm not holding my breath. Last time I looked, my standard iron fly setup, 45 DTE, was paying a little more than 2.00 in credit at the door. It ain't great, but there isn't that much "great" in this market, currently.
VIX: Ugh. VIX term structure is awfully shallow here, with the first /VX future at >16 (barely) wayyyy out in May. These kinds of levels militate in favor of hand-sitting on any bearish assumption term structure trades until we can see a pop in spot.
NVDA: With a six-month implied volatility rank of 85% and general background implied volatility of 55%, it's ripe for a volatility contraction play. They announce earnings on Thursday after market close, so I'll look to put on a play on Thursday sometime before NY close. I'll post setups as we get closer ... .
XRT: If you're looking to sell premium in the broad market or in sector exchange-traded funds, well, you're largely out of luck. XRT, however, is one with relatively high implied volatility rank/implied volatility such that it might be worth a play, but I'm not holding my breath. Last time I looked, my standard iron fly setup, 45 DTE, was paying a little more than 2.00 in credit at the door. It ain't great, but there isn't that much "great" in this market, currently.
VIX: Ugh. VIX term structure is awfully shallow here, with the first /VX future at >16 (barely) wayyyy out in May. These kinds of levels militate in favor of hand-sitting on any bearish assumption term structure trades until we can see a pop in spot.
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