Selling my VIX Call Options on market open Monday

Selling my VIX Call Options on market open Monday

On the theory that after Friday’s panic, we will get at least a modest recovery on Monday, I’m selling the three VIX Options in my Volatility Portfolio as soon as the market opens on Monday. The CBEO S&P 500 Volatility Index (VIX) jumped 54% on Friday to close to 28.62. My opinion is that we’ll see the “fear index” give back some of that jump on Monday if the market stabilizes. (If you think the market will plunge further, you should, obviously, hold onto your VIX Call options.

Trick or Trend: Is the VIX fear index moving into an upward trend?

Trick or Trend: Is the VIX fear index moving into an upward trend?

Our regular (or occasional or perhaps occasionally regular) Friday series (actually running on Saturday this week) Trick or Trend looks at what might (or might not) be emerging investible trends. Exclusively on JAM. This post won’t run anywhere else. Ever. There might be a trend here but with the recent performance of the CBOE S&P 500 Volatility Index (VIX) it’s really hard to tell.

Call to Action: Sell November VIX Calls at 18 and Roll into December Calls at 19

Call to Action: Sell November VIX Calls at 18 and Roll into December Calls at 19

Huge surge in volatility this morning. It’s as if everybody woke up and said, “Hey, you know there are risky trends in the world.” As of 12:30 p.m. New York time today, Monday, September 20, the CBOE S&P 500 Volatility Index is up 29.51% to $26.08. I think there’s more volatility ahead so today I’m going to sell the VIX November 17 Call Options with a strike price of 18 in my Volatility Portfolio and buy some more time with a purchase of the VIX December 22 Call Options with a strike price of 19.

Selling my VIX Call Options on market open Monday

How high will it go? VIX climbs another 11% today setting up test of top of recent range next week

The CBOE S&P 500 Volatility Index (VIX) closed at 20.69 today, up another 10.7%. That took the “fear index” above the 200-day moving average at 19.98. The VIX had previously moved above the 50-day moving average at 17.86. I’d be surprised if we don’t see more market nerves driving more buying of S&P hedges to send the VIX higher next week.

Selling Apple September Call Options to roll over into October Calls

Selling Apple September Call Options to roll over into October Calls

The Apple September 17 Call Options with a strike of $150 in my Volatility Portfolio climbed another 23.3% today. The options looks to be moving up as traders position themselves for a bump in Apple after the company’s next new product day–speculation has the date for the announcement of a nee iPhone as September 14 with pre-orders to start on September 17. The announcement is likely to be big news and will probably drive the stock higher. For the September 17 Call Options, however, the date is something of a double-edged sword since a September 14 announcement–a big positive–runs right into the time decay of the options since them expire on September 17.

Selling my Call Options on a runaway Microsoft

Selling my Call Options on a runaway Microsoft

A day after shares of Microsoft (MSFT) hit another all time high (see my post from yesterday August 19 on why) the shares have tacked on another 2.63% (as of 3:10 p.m. New York time) today to trade at $304.58. That has pushed the price of the September 17 Call Options with a strike price of $285 in my Volatility Portfolio up another 42.04%.

Selling my VIX Call Options on market open Monday

Rebuying VIX Calls for the Volatility Portfolio

Today the CBOE S&P 500 Volatility Index (VIX) dropped another 2.24% to 15.70. That puts the “fear index” back in the “complacency zone” where I’ve been looking to buy Call Options on the VIX in anticipation of a bounce back to the top of the current zone at 20 on the next “bad news” day. (Whatever the bad news might be.)

Selling my AMD September 17 Call Options (strike price of $92.50) out of my Volatility Portfolio

Selling my AMD September 17 Call Options (strike price of $92.50) out of my Volatility Portfolio

I got another 50% pop (aso f 3:30 p.m. New York time) today in the price of the Advanced Micro Devices (AMD) September 17, 2021 Call Options with a strike price of $92.50 (AMD210917C0009250). I’m going to take my profits here. With the end of earnings season in the next two weeks, I think the risk/reward ratio for holding stocks is shifting toward risk. And I’d rather be more in cash rather than less as we head into what I see as a volatile fall.

An odd market before big tech earnings #1–I’m holding onto my AMD and APPL options until after earnings

An odd market before big tech earnings #1–I’m holding onto my AMD and APPL options until after earnings

As of 12:15 p.m. the Standard & Poor’s 500 was down .01% and the Dow Jones Industrial Average was lower by 0.75%. Tech stocks were down much more with the NASDAQ Composite off 1.85% and the NASDAQ 100 lower by 1.82%. The tech companies due to report earnings today after the close were all down. Apple (AAPL) was lower by 1.68%. Advanced Micro Devices (AMD) had dropped 2.01%. And Microsoft (MSFT() was off 1.66%.