It is no mystery that the broad stock market indices have seen very low options prices, and implied volatility (IV), amid the recent complacent trade to the upside. So how can we utilize our options trading mechanics in a market that shows little opportunity? By searching for opportunity in single-name stocks and market sectors.
Today’s show revolves around the central topic of finding opportunity in market sectors while putting as much context as possible around this trade in terms of options strategies. Tom talks through the differences in how ETFs trade relative to single stocks and how that affects his strategy.
After getting some basics down on trading ETFs versus stocks, the guys put some historical numbers around the following market sectors:
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