Monday, July 12, 2010

VIX

I bought a single VIX JUL4 10 $25.00 Call Option @ $1.95. I am looking for a spike up to around the 30 level on the VIX. However, in case I am wrong and the markets continue to rally straight up then I will sell the contract when the VIX falls below 22.50.

I have a three open positions all with a bearish bias. I am 167% short and risking about 6% of account in total. Now that I have the maximum risk exposure that I care to take on at this point I will sit on my hands for the next few days and observe the markets and my individual positions. If my positions move in my favour and I am able to move at least one of my stops to break even then I will look to initiate another short position.

Until then, good luck and good trading!

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