What was once the VIX is now VXO. In the last 2 trading sessions VXO has gone from 18.27 to 25.09, a cumulative rise of about 37.3%. During the 2 trading days preceding 10/19/87, VXO went from 26.36 to 36.37 (+38.0%). Trade as you will.
I'm not in the top/bottom picking business but you might find this chart of interest. I first started presenting this chart a couple weeks ago because it looked like we were entering a "window of opportunity for change".
interesting chart, but those intersection points seem arbitrary. if I were looking at that chart, i would mark the change of direction points much earlier ...
A very important fact about the WHOLE picture since October of 1982 until now. These past 2 1/2 decades have been with falling interest rates. Sure the FED raised rates back up to what 51/2 % on fed funds? This is still not considered a tight interest rate environment. It is highly unlikely stocks will have such a friendly environment the next 2 1/2 decades (this is an understatement). Be prepared for more, not saying increasing, just saying more that we saw before June volatility in the months (years hopefully) ahead. This could be daytraders "MOTHER LODE" days, enjoy and have fun. The ONE_WAY mkt for stocks and stock index futures days are over for a long time to come...........be skilled in going long or short and all will be even better. HOG OUT!!
by hand in excel and I didn't customize anything to match fridays move, i just looked through the tables for last 12 years for 2 huge back to back daily vix increases such as we have just seen
lol i was waiting for someone to point that out for anyone who doesnt know the exact facts, vix in 87 crash topped out at 150, youch anyways, once in a hundred year event, if you are on wrong side of a train like that, well, nothing you can do..... (except be lucky enough to either be out of the market when it happens, or be lucky enough to be short)
Infolode, would you care to elaborate on your strike + call - stock - put hypothesis? Though i'm convinced your insight is brilliant, i'm having a senior moment and need some help here.
I don't "get it" either. This position has a capped profit on the downside. Maybe what he is saying that once these positions get into their max profit and then the market starts to go against them ("fat lady sings" ?), they will be unwound with the short stock being covered and the maybe the call option stays in place and potentially the put option, depending on how far it is from it's strike / how far in-the-money. This does look like a decent strat....but needs some P&L analysis with a changing volatility.