Ivan Zhigalov
The US stock market is still under uncertainty. The S&P500 futures contract keeps moving within a wide range (1077-1230). The price needs to come out of the range in order to clarify the direction of its mid-term movement. Apart from the range borders, the extra levels of support are located at 1100 (inside the range) and 1050 (outside the range). The extra levels of resistance are 1200 and 50-day MA.
The volatility of the S&P500 futures is still fairly high. Last week’s weekly range was equal to 75 futures points. The highest volatility was seen on Monday (44 pts), while the lowest one was seen on Tuesday (35 pts). The expected volatility (VIX indicator) is also high for a couple of times (above 40 pts). High expected volatility affects the expected value of an option trade aimed at buying volatility and makes volatility sales more preferable.
Календарь выхода макроэкономических событий на предстоящую торговую неделю:
A great amount of major economic reports may cause volatility spikes. That is why one should be careful when selling volatility (using condors or other risk-reducing strategies).
Provided by the Department of Options,
Ivan Zhigalov
