Thursday, July 26, 2007

VIX 21.50 = Blood in the Streets

In panic there is always the greatest opportunity.

I am long equities and short the VIX, as we are at VWSI -10.

6 comments:

rallymode said...

Those September 25 calls are up 100% so it wasn't a sure $800k but rather a $800K loss. Someone will be losing their job for selling vol at index peak.

Bill Luby said...

Good point. I wonder when their risk control guys will force them to cover that position.

There is still a very good chance they can pocket that $800k at Sept expiration, but they may be too wrong in the interim to be able to hold that position intact.

Bill said...

I've still got some that haven't stopped. My plan is to replace any foreign index ETFs that stop and start nibbling on some SSO after the GDP tomorrow.

Anonymous said...

Yep, I'm with you! My volatility model flashed BUY for the S&P500 right before lunch. Time to put some cash to work in the 401k!!!

Tom
www.neuralmarkettrends.com

Marius said...

Care to share how you trade the VIX, and why you selected that method?

Regardless, thank you for your excellent blog.

Bill Luby said...

Good question, Marius. Sometime in the next week or so I will talk a little bit about how I trade the VIX.

Cheers,

-Bill

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