Looking Back on 2014:
- Misperceptions from 2014 - Despite "low" VIX options, volume still strong in 2014. Vol/VIX was too cheap. OTM call buyers did well.
- Ukrainian crisis in Q1/Q2 and market volatility in October were two primary drivers this year.
- The ongoing oil meltdown as well.
- What option strategies worked in 2014? Put credit spreads and "Wheel of fun."
- Takeaways from 2014 - Do not get married to a single strategy.
Looking Ahead to 2015:
- Things to keep in mind - It might be time for a smart hedge. Volatility has volatility.
- Exchange fragmentation will continue.
- Expand your horizons.
