As I eluded to in my past trading ideas, the VIX is currently trading at levels which to me are surreally low. This is great entry for a long position for calls with strikes in the range of $13 to $15. The market (as the vol is currently priced) is taking volatility too casually and therefore ignoring the possibility of potential sharp market moves in a big way. This could come back to bite given the important events coming up (from earnings reports to the more impactful French elections).
This trade to me is a no brainer and one of the easiest out there. Vol DOES NOT normally trade at these levels so I would lap this up while I still can.
This trade to me is a no brainer and one of the easiest out there. Vol DOES NOT normally trade at these levels so I would lap this up while I still can.
Comment:
It exploded through 12 to 16. Happy trading!