Credit Spread Myths

So a few posts back I started on a bit of a rant on the BS being passed off as information on credit spreads and gave up about half way through. As the fashion for option bloggers is to do the odd video these days, I decided to finish the job in a video.

I've picked on the same article, because it encaspulates most of the nonsense out there in just two or three paragraphs and a few bullet points. I don't have anything to sell, so no need to be wary about any marketing at the end.

VIX Options Weirdness

I don't trade VIX options, but I've shown some pretty wacky disparities between call and put IVs. I thought there had to be an explanation, because it just wasn't credible that such huge differences weren't arbed away.

Dean Mouscher has the answer in a 16 minute video on the subject.

If you are trading these, or might at some point in the future, this is a must view.

Writing Commodity Options

A few of you still reading this infrequent drivvle of mine have mentioned the writing of options over commodity futures. I don't have enough experience with commodity options to be authoritative, but I have read what I think is an excellent book on the topic and it deals extensively with written options on futures.

This book is written by a bloke called Stuie Johnston. Some have criticized it for its conversational and irreverent writing style, but I found it not only occasionally hilarious, but very good at setting out a philosophy and methodology for premium collection on commodity futures.

Be prepared for a few statistics and discussion on seasonality... and especially what Stu refers to as NON-seasonal trades.

Check it out

He also runs a very good seasonal trading database site that if/when I have a crack at this, I will definitely subscribe to. www.timeandtiming.com (no financial connection blah blah)