VIX continues its higher lows and higher highs channel with the obvious elevated risk that exists in the world. Days we are in the low end of the vix are perfect for buying tail risk protection in the form of PUTs or selling OTM calls on underlying. Breaking the bottom of the channel will be more important than the top as this would signal an actual trend change. Cover sold calls and bought puts near the top of the channel and rinse. If the VIX breaks at the top of the channel, you will want cash to maximize the market buying opportunity. Timing the market is difficult, but not following a process and being greedy are not advised.
Trade active:
we broke the trend for a small period of the last 2 weeks and now we are back after the monthly VIX rolled over. The chart still looks to be intact, but with less confidence.