Tuesday, May 5, 2009

$VIX



The $VIX has been very weak the last couple of weeks. Since the SP's made the low in March the $VIX has not showed any strength. I don't think sub 30 is in the picture for awhile. When volatility levels get that low, it will be easier for equity to go higher. Calendars can be set further out, less credit will be received for short vertical/iron condors and buy write will yeild more from juiced up premiums. Looks like we might be there before we know it. 

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