Friday, November 4, 2016

Options for after the election are very expensive!

There's about a $10 election premium on any SPX option starting 11/9.  This may affect strategy.  That's a built in guaranteed loss (or reduced profit).  So you really have to be right on your trade.  It may kill the strategy of buying out of the money VXX options in both directions. 

One way around option price is to trade something like TVIX.  That can move 30+% in a day. 

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