Monday, August 12, 2013

Mean Reversion.....Please

So, I know almost all year I have said the markets need to mean revert....so I have been wrong...but we did get that little down move in June. However, it is not our job as traders or investors to be right it is our job to make money....which has been very difficult this year considering the low implied volatility. So, again, we are hopefully looking for a impl vol reversion or a VIX pop (same thing). So, course I am short again because of the low impl vol (which is same as being short due to volatility skew) Otherwise, pairs trading has been a very good trade lately. I have been enjoying my pair in SLV short gold long silver....which is up money right now, but otherwise that is my only pair. I am positioned in a few covered stock positions a bearish one in APOL and a bullish one in BBD. I am almost no idea what those companies do, but I needed those positions on. I am also short lots of put spreads in the VIX and vix products, long a few individual stocks, and short the overall market. However, just to mention my favorite positions is a short call spread in FXI.......there all kinds of fundamental reasons for this and I am considering shorting stock and turning it into some type of pair, but that is for a later post.

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