Wednesday, October 14, 2009

Buying fear in the morning (update)

The VIX is at year lows, and I think a small correction is fairly likely--SPY down to 104 perhaps.   I bought Oct VIX 22.5 Calls at 1.20 -- only 8 days to go before expiration.   Bid / Ask spread was 1.05 / 1.30 and the order took a couple of minutes to fill.

Update -- only a couple days to go bailed out at 1.00. Friday morning


Bill Luby said...

Hi Vance,

I just stumbled on your blog for the first time today and was delighted to see someone else who is not just using the VIX as an indicator, but also trading various VIX products.

You have some excellent content and now have one more enthusiastic reader.

Cheers and good trading,


VanceH- said...

Hi Bill, Thanks for the feedback. I faithfully follow your blog and appreciate your expertise.

-- Vance