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Tag Archives: investor fear gauge
covered call writing and market volatility

Using the CBOE Volatility Index (VIX) for Our Strike Price Selection

Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a dilemma. Increased market volatility will translate into higher option premiums […]

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volatility-based ETNs

Market Volatility and VIX-Based Exchange-Traded Notes

Our covered call writing and put-selling portfolios have been significantly impacted the past few weeks from extreme market volatility. In addition to rising wages, inflation concerns and projected interest rate hikes, volatility based exchange-traded notes are also playing a role in the market decline.    What is the VIX? The VIX is also known as […]

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VIX options to hedge an portfolio

VIX Volatility Options: A Place In Our Covered Call Writing Portfolio?

Option returns play a major role in our covered call writing and put-selling strategies. Mega-returns can be quite enticing but also very dangerous. Recently, with market volatility rising exponentially in response to global-economic concerns, a few of our members have inquired about using volatility options ($VIX) based on the S&P 500 volatility as a means […]

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covered call writing and technical analysis

Combining Technical Analysis And Market Assessment To Determine Strike Selection

Mastering stock and strike price selection are key components in successful covered call writing. There is no one factor that will dictate our choices but rather a mosaic of bits of information which will lead us to the best selections. In this article, I will discuss two of those critical components: technical analysis of the […]

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market assessment and covered call writing

The Role Of VIX and Market Volatility In Our Covered Call Writing Decisions

Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor fear gauge. With this in mind, covered call writers are faced with a dilemma. Increased market volatility will translate into higher option premiums because the […]

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Covered Call Writing and The CBOE’s Volatility Index (VIX)

Stock options strategies, including covered call writing, factor in a multitude of parameters including fundamental and technical analysis as well as many common sense principles. In my books, DVDs and seminars I discuss determining market tone before making any investment decisions. One of the main factors I utilize in this determination is the VIX. The VIX […]

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