Yo Pit Crazies,

Check out Griff and the best Macro Trader in options.  His recent webinar is right here. Also, look for an upcoming special on the UVIX reverse split…

When I talk about conditions in my options trading classes I am looking for unique setups that can catapult a trade quickly.  If I am an option buyer, which I am sometimes, I want a trade with the potential to explode.  What helps is finding when the market is ready to snap like a rubber band getting stretched.

VolMan is standing on a bit of a stretch.

What is the reason why Vol Man is so excited?  Here’s why the market does what it does…

Anything at an extreme is interesting

One thing retail traders have for an edge is picking a position.   If you want to trade options seriously, the only thing that matters is position.  If it ain’t on, you don’t care.  If it is on, you should care big time because that is where the Johnny flows.  Part of adding a position is when the markets separate.  Trading options is a lot about trading volatility if you choose it to be so.

Right now, implied vols are running higher and hot.  That means traders are paying up for options far and above the close-to-close ranges.  That is a much bolder posture buying options.  This means the options are not paying today but will be paid maybe tomorrow.

The best signal for trading options is realized volatility.  It is also the least understood.  Realized volatility is what is happening versus opinions of what is happening, implied volatility, for what might be happening.  The difference in what is happening from what might be happening is near a year high. Thus the VolMan excitement.

I am shorting VIX via puts but hedging with SPDR S&P 500 Trust ETF (Ticker:  SPY) puts in decent size.  One of the two will be right.  I put these trades on every day, or most days, in OP Pro and I drop them into the Chat Room.  Grab a seat while a few are left. If you call (888) 872-3301, Ted or Andrew can get you set up.