October 3, 2011
Good morning. Quite a week in the market last week, only to have the SPY down less than a point to close at 113.15 (.3%). If you had any positions, it certainly felt a lot different than a flat week, with the range of 112.98 (Mon.) to 119.56 (Tues.), and a huge rally Thursday in the last hour only to be followed by a large sell-off into the close on Friday. The VIX continues to be at very high levels, closing up 1.71 at 42.96 (4.1%). These levels of the VIX, compounded by a fairly pronounced skew going out, surely makes it tempting to try and maintain short premium positions in the weekly SPY options, but those positions (due to amazing intra and inter-day movement) are not for the faint of heart.