Market Update And Friday Q&A

Market Update

Hello Smart Option Sellers! The market had a pretty good pullback this week which sent volatility on a swift move up. When stocks fall, volatility goes up. See the chart of the VIX, which represents volatility levels for the market in general. The VIX gets its value based on options trading for the S&P 500 index. When the VIX rises, it's a very good indicator that there's some fear in the markets due to a sell-off of stocks. The rise in volatility makes options contracts more expensive, which is a great thing for option sellers like us. Let's see if there's any follow-through to the downside next week (although the market is up today). I'd rather not jump on any new put-sell trades yet in case the market keeps falling. For any newer Smart Option Seller members, check the current portfolio and instructions (listed below) as you can still get into two of our positions if you'd like. Friday Q&A Q: In today's Friday Q&A you said, "Although it would be very rare for us to be assigned, it still is an outside possibility." Please describe exactly how this might happen. The implication of your statement is that assignment could happen under some un-anticipated circumstances. Are you suggesting a circumstance where assignment results in less financial damage than buying back the option before expiration? Please describe and explain those circumstances. A: This question came in response to last Friday's Q