VIX Sets Up To Implode
mentioned recently, still seems to be hanging in there as a low-level cup and
handle. Continue to
look for buying
opportunities in calls and call spreads here.
For you OEX traders, once again we have a
plethora of VIX buy (and repeat buy) signals on the Market Bias Page. This,
combined with Wednesday’s intra-day reversal, suggests that we may finally
see an implosion in volatility. Therefore, look for
strategies which seek to capitalize on volatility reverting to the mean (i.e.
decreasing). Use caution though as many of these strategies offer limited gains
with the potential for unlimited risk.
luck with your trading on Thursday!
Protective stops on every trade!