Basic Training: 2014 Year-in-Review/2015 Preview

• What option strategies worked in 2014: put credit spreads, IV overpriced throughout the year, "Wheel of fun."
• Things to learn from 2014 - Do not get married to a single strategy.
• Misperceptions of 2014 - VOL/VIX was cheap. Despite "low volatility" options volume was still very strong in 2014. Tempting to believe that OTM call buyer did well in this extended market.
• Fed tapering - When is it likely to happen? What is likely to happen in the market when the Fed tapers?
• Things to keep in mind for 2015 - It might be time for a smart hedge. The return of Rho. Volatility has a volatility. Exchange fragmentation will continue. Expand your horizons.