hello guys, this is my last idea (maybe) before going on holiday! I think we should expect an increase of volatility, first because traders take a break and algos do stupid things, secondly the fractal took from last year from July to September suggests to take a long position on Vix.
The question is how to trade an increase in volatility?
Using options, back...
... for a 1.02/contract credit.
Metrics:
Max Profit: 1.02/contract
Max Loss: .98/contract
Break Even: 12.02 (no upside risk)
Notes: Here's the synthetic jade lizard setup I posted about (see Post Below). Basically, the bet is that VIX stays around here and 14-ish for the duration of the trade. I'll look to take off the short put/short call/long call at 50%...
Hello Traders!
There is the devilish and confusing correction on VIX index!
Although it’s readable and has the close negative correlation with E-mini S&P 500 and SPY index (etf).
Sure, that the price is forming the “Leading Diagonal Triangle” (LDT) in “a” subwave.
So it gives the opportunity, to predict continue of uptrend tendency on ES & SPY near time. ...
"A bored S&P 500 just meanders amid the minefields of an expanding macroeconomic battlefield featuring the U.S. versus the world."
Bored With Economic Wars: The S&P 500 Meanders Through Minefields drduru.com $SPY $QQQ $IWM $TLT $XLF $ITB #VIX #AT40 #T2108 $AA $BHP $RIO $FXY $USDCNY $DXY $USDX #forex $MSFT $RHT $SKX $TSLA
People frequently ask under what circumstances I would long a volatility product and, if so, what product I would use.
I generally shy away from long setups in instruments that experience either beta slippage or contango erosion such as VXX or UVXY since the vast majority of the time you're rowing against the contango tide -- a pop in volatility is required...
VIX (Volatility Index - CBOE) is showing signs of another "spike" in volatility sitting around the corner.
This would translate into a "fear" period.
US indices are showing wave counts which indicate that the current correction on the up-side might just finalize.
An Intermediate Degree (C) leg would be in focus for the completion of the current Primary Degree...
Hope this idea will inspire some of you !
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Gold chart wise doesn't look the best of charts. With rising interest rates and the dollar looking like it will start to pull back in coming months. As months go on, Gold has become less of a safe haven, yes ok the markets are still in an uptrend but what we have seen in previous months is uncertainty, which is where gold usually comes into play.
The mass mined...
Volatility is rising and we have confirmed higher lows in the 16.00/17.00 range with spikes higher.
It seems we are transitioning into a higher volatility environment, despite currently being in
no man's land.
Based on a current VIX of 15 divided by the square root of 12 (months).
This implies a 30 day SPX expected move of +/- 4.33% (1 standard deviation range).
The market is pricing in a 68% probability the SPX will close within 2620-2860 by Aug 2.
What are your thoughts on trading the expected move implied by the VIX or options market?
After a gap down to start the week, the S&P 500 (SPY) pivoted around its 50DMA. The week ended further confirming a bearish market turn.
Sellers Reward A Weak Stock Market Bounce With A Bearish Fade drduru.com $SPY $QQQ #T2108 #AT40 #VIX $UVXY $AAPL $AMZN $AXON $GS $CCS $PHM $TOL $KBH $MDB $PZZA $SNAP $TLT $ULTA $USO
