Yo, Pit Crazies,
Vol Man is falling off his chair because he cannot believe the VIX futures curve is in contango.
But there is a catch!
Apple Inc (Ticker: AAPL) and Amazon.com Inc (Ticker: AMZN) have earnings yet to come out as I write this.
Blackrock is telling clients the Fed will ease their stance! How do they know?
That makes for a witches brew of volatility for Friday and next week.
Let’s see how to trade it.
VIX Cash Is Dead-Flat to the VIX Future
That is usually a sign of an unstable VIX, not necessarily a bad SPX.
While the general expectation is lower short term volatility, the very front end is flat, which tells me that VIX can move 3 or 4 points in a week.
The next Fed meeting is Nov. 2, and that is a humdinger of a meeting. My guess is that we are in contango because the Fed will pause somewhat.
We will know for sure at the end of day on the 2nd.
I am running a short VIX, short SPDR S&P 500 Trust ETF (Ticker: SPY) trade via SPY Master that is doing fairly well.
If we have a short selloff, I will most likely close the SPY puts. If the Fed pivots, we could see a lower VIX, maybe even 20 again.
That is why the short end of VIX is flat.
The Rundown
Power Income Trader
Bill closed 2 nice trades yesterday: US Nat Gas Trust (Ticker: UNG) call spreads for 33% gain and Market Vectors Gold Miner ETF (Ticker: GDX) call spreads for 35% gain.
To Your Trading Success,
Yo, Pit Crazies,
Vol Man is falling off his chair because he cannot believe the VIX futures curve is in contango.
But there is a catch!
Apple Inc (Ticker: AAPL) and Amazon.com Inc (Ticker: AMZN) have earnings yet to come out as I write this.
Blackrock is telling clients the Fed will ease their stance! How do they know?
That makes for a witches brew of volatility for Friday and next week.
Let’s see how to trade it.
VIX Cash Is Dead-Flat to the VIX Future
That is usually a sign of an unstable VIX, not necessarily a bad SPX.
While the general expectation is lower short term volatility, the very front end is flat, which tells me that VIX can move 3 or 4 points in a week.
The next Fed meeting is Nov. 2, and that is a humdinger of a meeting. My guess is that we are in contango because the Fed will pause somewhat.
We will know for sure at the end of day on the 2nd.
I am running a short VIX, short SPDR S&P 500 Trust ETF (Ticker: SPY) trade via SPY Master that is doing fairly well.
If we have a short selloff, I will most likely close the SPY puts. If the Fed pivots, we could see a lower VIX, maybe even 20 again.
That is why the short end of VIX is flat.
The Rundown
Power Income Trader
Bill closed 2 nice trades yesterday: US Nat Gas Trust (Ticker: UNG) call spreads for 33% gain and Market Vectors Gold Miner ETF (Ticker: GDX) call spreads for 35% gain.
To Your Trading Success,
AG
AG