Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (903)	12/19/2013 10:19:41 PM
From: skinowski	Read Replies (1) \| Respond to 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.