As is common when the stock market is moving lower, we’re seeing rising options premiums. We aren’t seeing any big volatility spikes yet, and $VIX is still relatively muted, but the recent rise coupled with setups that appear to be ripe for some sideways action in the coming weeks and months has me on the hunt for delta-neutral premium selling opportunities.
Today’s trade is in a metals and materials stock that appears to be stuck in a year-long range that we’re betting on continuing.
Check out this chart of Freeport McMoran $FCX for a visual of what we’re seeing: [Read more…]