After what seemed like a never ending upward trajectory for stocks (well, ok mostly tech stocks) , we finally had some volatility in the markets over the last few weeks. It’s interesting that when the market goes up fast the VIX falls (isn’t that also increased volatility?) I guess that’s why it’s more aptly labeled […]

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If you know the basics of trading credit spreads, you know that volatility is an important component. You WANT volatility. Volatility is your friend. Why? Because volatility is uncertainty and uncertainty drives options prices higher. The higher options prices are, the more premium we can extract from our credit spreads. However, sometimes you can get […]

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After months of low volatility, traders of credit spreads like me are saying “No Mas!” For sellers of option premium, specifically credit spreads, these would appear to be the golden days as volatility has gone through the roof (although easing back a little as of late). However, despite inflated premiums, it has been hard for […]

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