Unfortunately Vix May Stay Low

Yes, it look looks like VIX may stay low again, and it will most likely drive market up. When Vix does blow through 16 it usually doesn't go much farther, and the down move doesn't continue. Therefore, I have kept out of short US equity (SPY,IWM,QQQ), and I have simply been selling premium in some high vol individual stocks. Also, earnings plays have been really good. Personally, my favorite strategy for earnings right now is the broken wing butterfly (I will talk about this in a later article). I have been short some crappy invid stocks (BBRY for example), and I have been short international stocks with the main short in EWW. I do have one big delta short US position and that is QQQ (Long a put spread). I will be closing out that winning position today. Other than that, I am also selling quite a bit of gold premium. These gold position have been tormenting my account due to the large daily swings in gold. However, gold have been a great trading product as it constantly mean reverts, but if you want to trade it you have to stay very small and understand your risk from a correlation standpoint. As in you have to understand what it means to be short puts in gold miner XYZ, then short a put in gold, and then long covered calls in a random silver stock. These position will all correlate and could easily be dangerous to your account if you don't understand this risk. Also, by the end of the weekend expect me to have a study posted about some of the action in the VIX versus the SPX to see if we can find any directional interest. Just remember to always apply a strategic play before a directional one. Duration over Direction......