Current VIX levels

Discussion in 'Options' started by hedgeman, Jul 19, 2012.

  1. hedgeman


    Good morning traders,

    This is not another doomsday thread.

    I just wanted to get a feeling as to what fellow traders are thinking/planning for with current VIX levels. I know the VIX can go lower and stay there for a long period of time but you just need to take a look at the VIX chart to see how things can turn on a dime.

    I am bullish on the VIX and preparing for a big push lower in the market over the next few weeks and into September which can be a volitile period. I'm keeping spread widths shorter and getting smaller. I have leftover RUT puts for SEPT at 600. And no, I don't expect to have this in the money. My AUG trades are back ratios. I'm definitely not advising but this may be a good time to get more defensive or have some trades with positive vega/vomma.

    What are your thougts?
  2. Complacency will reign until the FOMC meeting around the end of this month. Don't expect too much volatility unless they don't announce anything at Jackson Hole next month. Volatility should start to move up a little... But, nothing that will make you any money.

    You can bet on a pop if the EU crisis comes up again in that time... But nobody can predict that.

    It's a low odds gamble I wouldn't take.
  3. VIX @ 14-ish has been support for the year (13.66). I'd wait 'til at least below 15 again before opening a long VIX position.

    Right now August VIX futures have a channel low around 16.80 (moving lower by the hour). I'd like to see it touch that line and look for it to take off from there.
  4. I've started laying out "bullish on big move" positions. Piece by piece, because as you say, it can go lower and stay low for a long time.

  5. TskTsk


    Seems once it gets to these levels it always pops up again. I'll start initiating some long positions if it goes a bit lower.