VIX below 15

OK, so not a lot of publishing for a long time.  Sorry, been busy... trading volatility.

The rule has been long the VIX under 15 and short the VIX over 17, not hard and fast rules, but have been safe bets.

TVIX in the 2.60 range, starting to load-up for an all-in position.  It has been a wild ride lately.

News this week shot stocks up, Europe planning on more bail out aid, how can that possibly be good.  Sequestration in the U.S. will start showing it's impacts, especially since the govt's fiscal year starts Oct 1 and the cuts mandated will eat into most federal programs and prevent federal contract growth, meaning less jobs.

Buy TVIX, VXX (VXX options) and hold them!

Happy trading...

VXX Feb 13 28 Puts 4.05

Happy Trading...

VIX At It's Lowest Ever, Almost

The ^VIX is now below 14, an unheard of level over the past 20+ years.  Undertones are showing signs of a slow-down in housing, continues worry of getting control of debt, coming to an agreement on cuts due in March and QE detrimental effects.  If earnings   come out and show a slow-down expect the ^VIX to head back north.

I am currently long the TVIX.

Happy Trading...

SODA & HLF

Soda Bull Call Spread (buy Jun 40 sell Jun 50) working very well!

HLF weekly's returning over 1100%.  So, yes we missed the FSLR calls but can't say I haven't mentioned watching the solar sector recently.

Data from options monster below!

Options, it's where the money's at...

Happy Trading...

Herbalife Trending Well

Herbalife has moved since our recommendation and since the close of December Options which is where the short trade happened in the Puts.  This could make for a textbook straddle at the 30 strike given the outcome of Herbalife's talks scheduled later next month.

Happy Trading...