VIX Moving Higher

VIX Moving Higher

CBOE Market Volatility Index (^VIX, 51.65, up 5.30) has traded in the high 30’s, low 40’s range but seems to be picking up steam. A lower trending market takes the VIX higher and that is what we are seeing today. That tight trading range is now broken with the VIX taking off to the 50’s. The VIX was at 75 back in November. This is somewhat of an aggressive trade but I like the VIX March 70 calls (VIXCP, $0.80, up $0.25) here at these levels. The last hour of trading could be very volatile and if so, the options could get some decent returns. However, we are playing with March options and the time frame for trading them is going to be short. Rick Rouse Rick@OptionsMentoring.com]]>

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