Benzinga Options Outlook for the Week of June 3
Last week was solid chop action for the majority of the week.
The iPath S&P 500 VIX Short Term Futures (NYSE: VXX) had hit some serious lows, really discouraging many options traders and prepping everyone for the summer trudge. Friday's action threw a wrench in the bulls camp as they tanked the S&P 500 (NYSE: SPY) several percentage points in the last couple hours of trading.
Traders should be aware of the seasonality of options and how summer trading ends up. Keep positions small and try to only go after the best setups.
Tech stocks and high flyers like Amazon (NASDAQ: AMZN), Google, Priceline.com and Apple will probably be the only big names to squeeze some juice out of.
If you have a big enough account, writing strategies should pay out pretty well until real volatility picks back up in the fall.
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