Markets continue to be “messy” and it’s tricky looking for positions to take aggressive stances in. And with VIX hovering at or near the 30 level for the better part of the past week and a half, the option trader in me continues to look for opportunities to sell premium.
A smarter man than me once told me: “If something is working, find ways to do MORE of it!”
Well, selling premium on balance has been working pretty well since January, so…
Chatting with the team this morning, one pocket of strength we identified that has been holding up relatively well in this slop is the banking sector. And while there weren’t any individual names we were willing to bet the farm on, the financials sector ETF $XLF caught our attention as a good possible candidate for a delta neutral credit spread. [Read more…]