BofA interest rate strategists Ralph Axel and Ruslan Bikbov suggest that now would be a good time to buy tail risk hedges. (hat tip Joe Weisenthal) 6-month options on 10-year swap futures are as inexpensive now, they claim, as they’ve been in decades, excluding one period in 2006. 6M IV on 10Y Swap Futures, bp. Source: BofA Merrill Lynch Global Research So far, so good. If rates are your key concern, this looks like a decent time to…
Tuesday, August 31, 2010
Traders have been increasingly eager to speculate on the future direction of interest rates. The volatility implied by options on 2-, 5-, 10-, and 30-year Treasury notes and bonds has lifted the Merrill Lynch MOVE Index above 110. For perspective, note that the recent high of 116 occurred on May 6, the infamous “flash crash” day. Despite the well-known concerns many have about the complexity of leveraged ETFs and options on them, speculators haven’t hesitated to express their…
Friday, July 25, 2008
Option Strategies for Directionless Markets: Trading with Butterflies, Iron Butterflies, and Condors Anthony J. Saliba, with Joseph C. Corona and Karen E. Johnson (Bloomberg Press: 2008) When traders are first exposed to spreading strategies like butterflies and iron condors, one of the first questions they always ask us is, “Can you recommend a book that goes into these strategies in more detail? Where can I learn more?” We’ve had to reply that there aren’t really any books that discuss iron…
Jared Woodard is a registered commodity trading advisor who specializes in trading volatility as an asset class. With over a decade of experience trading options, futures ... Read More
© 2013 Condor Options. Powered by Wordpress.
Saturday, March 17, 2012
2 Comments