I’m sounding like a broken record about elevated options premiums and my desire to be a net seller of options, and for good reason: $VIX continues to hang tight in the 30’s. And when volatility is this high, it tends to favor the premium sellers. Not every time, but most of the time.
So during our morning Analyst meeting, me and the team were kicking ideas around for putting an options trade on today. And while there are some tempting candidates for putting delta-neutral credit spreads on — we all coalesced around the idea of leveraging the high prices of put options here into a long position in Nucor Corp $NUE: [Read more…]