NaughtyPines

THE WEEK AHEAD -- "LESS THAN SEXY" FOR PREMIUM SELLING

CBOE:VIX   Volatility S&P 500
With the VIX             finishing the week out at 16.66, next week is setting itself up to be a less than sexy week for premium selling, particularly in broader market instruments like SPY             , IWM             , QQQ             , and DIA             .

Moving to other sectors, the Brazil ETF , EWZ             continues to be hot premium selling wise, with an implied volatility rank of 72. A couple of issues in the oil             and gas space follow closely behind in the 70+ club ( UNG             (implied vol rank 72); RIG (71)); with several gold             plays remaining in the 60s ( GDXJ             , GDX             , GG             ).

From there, volatility in individual underlyings and/or ETF's slips off somewhat dramatically, with only a few in the 50-60 range (X at 57; ORCL             , 57 (one of this season's last earnings plays); CAT, 55 ( earnings afterglo vol); and GLD             , 52; with the remainder of most highly liquid, options playable issues slipping below 50 thereafter.

Given the fact that I'm in a gold             play, in EWZ             , and have exposure to oil             , I don't see myself putting on a heckuvalot of new trades next week. That's not all bad; these little volatility lulls make for a good time to do housekeeping on the various messes I created during the last volatility wave, clean up the earnings plays that didn't work out this past season, and/or dry out powder for the next volatility spike or whatever comes next ... .

Naturally, should VIX             spike to plus 25, I'll be right back in it with some new plays to take advantage of that. In the meantime, a cleaning of my trading "garage"/"basement"/"backyard" is overdue.

It ain't sexy, but it's gotta be done some time.

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