A +$13,085 trade Vol trade presenting excellent risk/reward
The 11-12 area has done very well for us, as price tends to depart from that point after a matter of usually 7 trading days.
Over the years we have seen moments in which the markets reach new highs or hover on the high end of their range.
The VIX is a measure of volatility and when its low fear is also low because investors are not being cautious. We see this as a moment to sell the market, and capitalize on a lowly priced volatility trade.
Buy low and sell high............ but this time Volatility is cheap.
This trade is big enough to put on those types of gains ($13,085) and in less than a month.
For every 3 points in risk we are returning 12 points in reward. This is in the first phase of working, and it is on the verge of finally breaking out.
Over the years we have seen moments in which the markets reach new highs or hover on the high end of their range.
The VIX is a measure of volatility and when its low fear is also low because investors are not being cautious. We see this as a moment to sell the market, and capitalize on a lowly priced volatility trade.
Buy low and sell high............ but this time Volatility is cheap.
This trade is big enough to put on those types of gains ($13,085) and in less than a month.
For every 3 points in risk we are returning 12 points in reward. This is in the first phase of working, and it is on the verge of finally breaking out.
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