PPI Somewhat Hot, Stocks Wait for CPI

May 14, 2024

VIX is trading 13.52 after PPI number. Say what you will, but stocks did not care about the current hot PPI number and are looking forward to the CPI tomorrow. It will be a big test of VIX if it can hold up through that number.

9-day VIX is 13.71% and 10-day SPX realized is 12.97%. We dropped into a just contango in all terms and heading to the bottom of Zone 1.

VVIX is 76.70 (VVIX > 100 is bullish VIX). 30 Day Realized Vol in SPX moves up to 12.91%. VVIX is at year lows. This is the best opportunity.

Short Term Trades (1 to 10 days):

5 VXX May24 14/12.5 pv for .85  .87

1 SPY May24 495/485 ps 2.25   2.25

I sold 5 of 5 VXX put spreads for $600 total take.

Open Trades

Trade #185

I am holding this until Wednesday’s close.

5.13.24 11:47 AM – Buy to open 1 SPY May17 519/522 Strangle pay $5.25 maximum $5.30 (1 MAY17 519 P/1 MAY17 522 C) #185

Trade #184

I sold an AAPL May24 190 call and need the stock to move here. The 175 puts are down to .35 so I need $468 in total sale to BE with current value $2.20

3.12 + 1.75 + .96 =5.83 -1.15 = 4.68

5.6.24 11:37 AM –  Buy to open 4 AAPL Jun07/May17 175 Put Calendars pay $0.80 (4 JUN07 175 P/-4 MAY17 175 P) CORRECTION #184  .78 fills

Trade #183

-14% down $45. Filled 3.20. I might hit the bricks today with 0 INTC move so far. Closed 2.75.

5.1.24 11:28 AM – Buy to open 2 INTC Jul19 30/31 Strangles pay $3.20 maximum $3.30 (2 JUL19 30 P/2 JUL19 31 C) #183

Trade #181

If UVXY gets to 37 or VIX moves up to 18, I will buy 1 VIX Jun18 19 call as hedge in Zone 3.  Looking for $10.00 on these but 33% so far.

Buy to open 2 UVXY Jun21 33 puts for 5.0

Trade #177

Sold SVXY call at .75. or 1.50. I am still holding the VIX May22 20 call.

4.3.24 11:40 AM –  Buy to open 2 SVXY May17 115 Calls pay $2.85 maximum $2.95 #177 filled 2.85