DJ MARKET TALK: VIX Shows Evidence Of Some Worry Edited by Thomas Granahan Of DOW JONES NEWSWIRES (Call Us: 201-938-5299; email: tom.granahan@dowjones.com) MARKET TALK can be found using N/DJMT 10:43 (Dow Jones) Stocks not losing too much ground, but the options fear gauge jumping a fair bit Wednesday morning. The widely-watched VIX, or CBOE volatility index, is up 2.02 to 40.10, pushing above the 40 barrier for the first time since Feb. 13. VIX, which increases when anxious investors bid up short-term puts on the S&P 100 Index, is still well short of the 50 levels it topped during the July and October stock-market lows. (KT)
guess i won't have to wonder long about 792 on the sp3h. if only we could hit it with a -1200 TICK.. ah well...if only.
hey chas, it seems like you have some experience with index options. i have been doing research up the ying yang on the QQQ's. I'm still overly bearish, especially since it looks we are on a downtrend per the indicatators ive been using. however, we are near so many alltime lows, couple with the fact our friend bin laden might be caught any sec and i have no idea how the market is gonna react to the UN news. Anyway, I'm utterly confused on the outlook as you can see. I'm thinking about buying an APR03 straddle for no more than $2.60. Just wanted to get your sentiments and how you generally play straddles.
it does seem like a good environment for straddles but now the premium has already been pumped up, so its probably too late to buy. However, I never did well with options and have gone back to stocks and am currently long QQQ.
ya i hear ya, it's just frustrating because i'm sick of sitting on the sidelines. the only thing i love is the movement and i think we can count on that for awhile, since this middle east thing is not gonna go away for awhile....we will see how things look in the morning...thanks for the input