Be Scare When the VIX is so low

[brokenmarkets]

intraday momentum and volatility is less than afterhours.

the fact that it gapped from yesterday close. on light volume..volume is so low event the HFT machines can move this market.

Quote from galvinlee888:

Large traders ? you mean the Fed ?

 

[Options_Noob]

The risk/reward to the downside is amazing right now. I'm buying some January put vertical spreads. Just too cheap to pass up.

If the market continues to go up....meh....I will not have risked very much.

However, if the market goes down by a reasonable amount in January......

 

[galvinlee888]

Quote from Options_Noob:

The risk/reward to the downside is amazing right now. I'm buying some January put vertical spreads. Just too cheap to pass up.

If the market continues to go up....meh....I will not have risked very much.

However, if the market goes down by a reasonable amount in January......

I am waiting for any sign of reverse and SHORT

 

[nazzdack]

Quote from galvinlee888:
----I am waiting for any sign of reverse....
----and then go SHORT

If the market "retraces", won't you be still afraid to do anything for fear that the market will retrace against you beyond your protective loss-limit?

 

[galvinlee888]

Quote from nazzdack:

If the market "retraces", won't you be still afraid to do anything for fear that the market will retrace against you beyond your protective loss-limit?

Part of the cost to do business.. Take small loss

 

[Corelio]

Quote from galvinlee888:

The market is trending up again today but I don't dare to get into the market and LONG any positions.

With the VIX in this low level, it is better sit tight and be ready to short the market when the time come to ..

What you think ?

VIX "low level" is a loose definition. Low relative to what? One would argue differently if you compare IV with actual realized volatility in the current environment.

 

[gettinglucky007]

Lol, it's thread like these that will sink the VIX even lower!

 

[galvinlee888]

Quote from Corelio:

VIX "low level" is a loose definition. Low relative to what? One would argue differently if you compare IV with actual realized volatility in the current environment.

Agreed it may go down further but the chance it will go higher is much higher than it will go lower.

I will stay tight and get ready to SHORT the market (or long volatility) as soon as it move up again..

 

[lescor]

Have you looked at a vix chart from 2005-2006? We were in the 12-14 range for the better part of two years. How long are you willing to sit on the sidelines?

 

[galvinlee888]

Quote from lescor:

Have you looked at a vix chart from 2005-2006? We were in the 12-14 range for the better part of two years. How long are you willing to sit on the sidelines?

Good time to take the break