Benzinga Options Outlook for the Week of May 13

Markets continue their move up in a slow trudging manner. Unlike our typical bull rallies where everything across the board is breaking out. We have slow movements along with historically low volatility environments. This combination makes the risk favorable for those that are long options, but without any solid moves in stock, much of that volatility is sapped out and the decay writers are making it on top. Many put writes post earnings have been doing wonderfully, such as PCLN from last week. Overall sentiment going into the summer is nothing outrageously bullish or bearish. With continuation with this action, we'll most likely see melt up or melt down action. In these environments, its best to be a net writer of options or find the stock that moves with the markets. That way, you'll be able to capitalize on cheap volatility and good delta moves on stock.