The market bounced today, retracing part of yesterday’s sharp drop, but we’re still sitting below the 50-day moving average. The driver here is uncertainty. Conflicting headlines around geopolitical developments have eased some concerns while raising new questions, and markets don’t like mixed signals.
That back-and-forth is likely to continue, which keeps price action active. With volatility still elevated and the VIX hovering near 17, we’re seeing the kind of movement that creates opportunity for option traders. Covered calls and cash-secured puts are getting filled as the market swings, and that kind of two-way action is exactly what keeps a lot of strategies working.
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