Volatility continued to rise with the VIX up 5% after yesterday's high SKEW reading. Today the SKEW rose to extremes with a reading of 143.43! This is a big number that has not been produced many times in the last five years. These are correlated with high levels of volatility in the very near future. However, this is likely related to the inauguration of Trump on Friday. Traders are hedging their positions by purchasing puts going into this event.
Without a follow thru to the downside today, I closed out the SPX 2285/2295 call spread for 45 cents, profiting 65 cents on the trade from last Thursday. As Yellen started speaking and the market rose into the last hour, I tried to sell the same spread again for $1.20, but could not get filled as the mark was around 80 cents only. I am looking to sell calls again on the move up from here.
