Open Interest In VIX Options Call-Heavy in August, September

posted in: Derivatives, Equities, Technicals | 0

In the August expiration, the amount of call open interest in VIX heavily outweighs that of puts.  Put open interest, represented by the red bars in Chart 1, is decent in near-the-money or slightly-in-the-money strikes, but pale in comparison to … Continued

Dynamics Between Next Week’s FOMC Decision, Elevated Short Interest, And Options Expiry

posted in: Derivatives, Equities | 0

Next week, the FOMC meets. The two-day meeting, the year’s last and a highly anticipated one, ends Wednesday.  A rate hike is widely expected.  The fed funds rate has been stuck near zero for the past nine years. Markets currently … Continued

IWM Weekly Naked Call For Income At Best, Go Short Near Resistance At Worst

posted in: Derivatives, Equities, Technicals | 0

In the latest reporting period, there was a big drop in short interest on IWM, the iShares Russell 2000 ETF.  It dropped 10.1 percent period-over-period to 118 million shares – the lowest since the middle of August.  Shorts had been … Continued

Weekly Naked Call On IWM — Willing To Go Short Near Resistance

posted in: Derivatives, Equities, Technicals | 0

Traders – the good ones – must be having a field day.  Stocks are swinging wildly. IWM, the iShares Russell 2000 ETF, fell 11 percent during August 17-24, then rallied nearly 10 percent by September 17, fell again – nearly … Continued