It may just be a coincidence, but each time I have been tapped as a guest columnist for The Striking Price on behalf of Steven Sears at Barron’s, there has been a spike in volatility just as I sit down to draft some thoughts. Perhaps Steven knows something I don’t, but if he does, he’s not telling.
Today in There’s Opportunity in Uncertainty, I build on some themes from a previous September column, Will Market Volatility Return to Crisis Levels? and discuss why I think those who have been earning a nice living by selling options steadily for the past two years or so may still be able to carry that strategy forward.
In today’s column, I also mention the sentiment cycle pioneered by Justin Mamis in The Nature of Risk. As that graphic has never appeared on the blog, I have decided to include it below for reference.
I will take up some of the ideas presented in the Barron’s column, including information risk and price risk, in this space going forward.
- Hope and Depression in the Investor Sentiment Cycle
- VIX Futures: What Were/Are They Thinking?
- VIX Futures Contango Soars
- More Strange Happenings in the VIX Term Structure
- Today’s Jump in the VIX Futures Term Structure
- Availability Bias and Disaster Imprinting
- Will Market Volatility Return to Crisis Levels (September 15, 2010)
- The Perils of Predicting Volatility (May 20, 2010)
- Take a Longer View on Volatility (July 2, 2009)