SPY & GDX puts closed in profit, intc
ETFS
Mert Meral
1 min read
Our GDX @ 32 and our SPY @ 540 puts closed at +67% in profit.
We are in a low volatility regime and both the VIX and VVIX are not indicating any stress in the market. The market is drifting higher and it seems that the market will start its year-end rally in the SPX somewhere around 6100-6200.
In this environment with such low volatility, options are also very cheap and it is difficult to generate premium income. Theta does have an effect, but everything just takes longer.
We set up our SPY trade on November 6th and it took us almost a month to collect 67% of the premiums. We will now wait until December 20th, 2024 and on or after the witching hour the volatility should increase again, time will tell the story.