Weekly Options Midday Update for November 1, 2011 (TLT, MRVL, QCOM)

Markets are in a sharp decline today amidst renewed Euro Zone concerns. The VIX has gained over 20% on the day thus far, currently standing at 36. I know VIX options activity over the last few sessions has suggested investors were anticipating volatility to subside throughout the remained of the year, but I never got quite comfortable with the ‘fear gauge’ hovering below the 30 line.

Initiated 3 new weekly options positions this morning in accordance with MarketClub Signals. Purchased the deep in-the-money 116 strike weekly calls in the TLT ($3.20) and the deep in-the-money 14 strike puts in MRVL ($0.53). In addition, sold the 52.5-55 weekly call spread in QCOM, collecting $0.58 in the process. As of 1:25 pm the MRVL position is up 37% and the TLT and  QCOM short vertical are both trading around break-even.

Weekly Options Midday Update

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