The market hates uncertainty

As I write that little gem it was one of the first things I learned as a market maker.  To be more specific what I learned and what I taught was as a market maker you make the paper pay for your uncertainty.  If the tape is starting to go to a place you are unsure of, raise the volatility.  That is a mantra I always go with.  We spend a lot of time in the Option Pit Gold Courses trying to teach our students how to read the tape.  The “tape” is the price and volume action in any particular time period.