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Strategies & Market Trends : Option Strategies

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To: Bridge Player who wrote (903)	12/19/2013 10:19:41 PM
From: skinowski	Read Replies (1) of 2591

So, you will be long VIX and short covered calls against it. That makes it a neutral to slightly bullish position on VIX -- and a neutral to slightly bearish position on the market. Hard to tell.... The markets are in a very bullish time period right now. At the same time, VIX has been not far from support, and today traced out a relatively bullish "piercing" candle. Looks like it is refusing to keep crashing like it did yesterday. It's been noted that often, prior to market reversals, the VIX "refuses" to confirm new lows (or highs) in the markets. Indeed, right now SP is testing previous all time highs - but the VIX is no place close to the lows of last August and November. Good luck with the trade... PS: statistically, it's a bullish period, but last year the markets sold off pretty sharply into the end of December. You never know.

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