VIX >15 MAY WARRANT LOOKING AT ROTATING BACK INTO INDEX ETF'S
Ordinarily, when VIX is below 15, I look to get in on long volatility plays, and I piled into them mightily on the sub-13 dip, loading myself up on them, thus spoiling my appetite to partake of earnings in any meaningful fashion.
Now, however, with VIX starting to rotate into +15 territory (today's high was 17.09), I'll turn my attention back to at least looking at index ETF premium selling plays, although -- as always -- higher volatility means higher premium, and VIX at 15.15 isn't actually the index ETF premium selling bonanza we had in mid-December, mid-January, and mid-February.
As of right now, QQQ offers the highest IV out of the four major index ETF's, and my standard, put-skewed iron condor setup (e.g., June 10th 96.5/99.5/110/113; 65% POP; $216 max risk) is offering up $84/contract at the mid price, which isn't horrible (using a four-wide instead will yield $100/contract at the mid price with a $300 max risk). As always, I'll go in small, keeping powder dry for further opportunities to go long VIX/VIX derivatives (if VIX fades here) or other index ETF setups (if VIX continues to rise).
Now, however, with VIX starting to rotate into +15 territory (today's high was 17.09), I'll turn my attention back to at least looking at index ETF premium selling plays, although -- as always -- higher volatility means higher premium, and VIX at 15.15 isn't actually the index ETF premium selling bonanza we had in mid-December, mid-January, and mid-February.
As of right now, QQQ offers the highest IV out of the four major index ETF's, and my standard, put-skewed iron condor setup (e.g., June 10th 96.5/99.5/110/113; 65% POP; $216 max risk) is offering up $84/contract at the mid price, which isn't horrible (using a four-wide instead will yield $100/contract at the mid price with a $300 max risk). As always, I'll go in small, keeping powder dry for further opportunities to go long VIX/VIX derivatives (if VIX fades here) or other index ETF setups (if VIX continues to rise).