Selling Premium Weekly Options

Selling Premium Weekly Options

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Selling Premium in Weekly Options has been what’s out there. The SPX last week stayed within the expected move. Ideal for premium sellers. So what to expect next week? I’ve been watching the SKEW which has dropped off significantly. I’m interpreting this as traders are reloading for the next down move. I also like to look at the VVIX which is the volatility of the volatility. This sank to a 2 month low and another sign of traders reloading for the next down move. Once again the financials are showing much higher implied volatility than the SPX. The XLF 5 day options has significant backwardation versus the further out options. There may be a few more days of short covering, but get ready for more volatility.

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