Wow! It's ugly out there. I'm looking at March, yes March, bull put credit spreads on the SPX.
What has changed?
Implied volatility has spiked with this morning's sell-off. The VIX is at 12.91, reflecting a desire in the market to buy put options.
Be cautious, however. This sell-off may be signaling a change in market direction, which is a dangerous time for us index credit spread traders. March options have just a bit more than a couple weeks left in them.
By the way, CROX is down but is still above our short strike.
Good trading!
Christopher Smith
TheOptionClub.com
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