Tuesday, April 19, 2011

Russell with a Classic 78 Retrace

I added puts on this move up.   

Amazed that the Vix dropped almost back to Friday levels.

I wonder how many bought puts on Monday and then were crushed on a 40% drop in put value.

Even the puts I bought on Friday were mysteriously priced almost same as purchase price, even though Vix was slightly higher, and index value was still significantly down.     No time to analyze that in detail, just the market makers sucking out the Vega and increasing their profits.

What can I say, added puts.


  1. I think I agree with what you are saying. I closed SP500 puts on Mon AM with the 2% drop. That is max for humans collectively on indexes other than on "accidental" rout days by my math. Went back short NAS100 May ITM puts very late this afternoon. I think the psycobots have done their bear damage. I almost expect another gap down day on Wed. We'll see how it goes.

    You know I am a numbers guy. Here is a cute one. VIX finished the day down 6.66%. I'm not really a number of the Beast guy but you can't help notice these things after a while. VIX is pretty much exactly back to where it was before the Mon AM debacle.


  2. I went long CSCO today, R1 17, r2 17.3, will go for r2 exit 17.3

  3. CECO.S1 20.7 S2 20.2
    BTU S1 62, S2 60

  4. i like GOOG at these levels. sorry to hear you don't trade it. i only trade it on dips like these. i don't get that many opportunities a year on a company like this.

  5. what vix strike were you using? i've noticed that puts and calls don't work well 3 to 5 weeks to OPX

  6. new bullish egg forming on copper

  7. never trade the Vix directly, use as indicator.

  8. you bought iwm puts... i see... in the article, i thought you bought vix puts. i'm slow...


Insightful and Useful Comment!