Vix heading lower

[DeltaSpread]

Quote from IV_Trader:

I think it was KLIC (Kullicke and Soffa) and not AAPL , had a huge pre-warning that started the tanking

Thanks for the input. For some reason, Apple always stuck out in recollection for me. At that point in time, you never saw a company of that caliber or magnitude lose 50% of its market cap in afterhours. It wasnt a high beta mover like CMRC, ARBA, JNPR, or MSTR etc.

The drop was from $35ish down to high/mid teens.

 

[myminitrading]

Quote from IV_Trader:

I think it was KLIC (Kullicke and Soffa) and not AAPL , had a huge pre-warning that started the tanking

I distinctly remember Dell warning and blaming the Euro currency.

 

[IV_Trader]

Quote from myminitrading:

I distinctly remember Dell warning and blaming the Euro currency.

right , but some time before warning they cancel orders from KLIC. When KLIC warned some said that their customers (AAPL,DELL , MOT) will follow soon

 

[DeepFried]

Quote from myminitrading:

lowest close since 12-27-93

What? That is dead wrong. The VIX closed at 10.29 on 12-22-05 and at 10.27 on 12-23-05. That would be less than a year ago for those of you having trouble with the calendar. The S&P500 rose 3.5% over the following 5 months.

The low VIX is a legitimate concern but your discussion would be a hell of a lot more valid if you weren't making up statistics to support your argument.

 

[myminitrading]

Quote from DeepFried:

What? That is dead wrong. The VIX closed at 10.29 on 12-22-05 and at 10.27 on 12-23-05. That would be less than a year ago for those of you having trouble with the calendar. The S&P500 rose 3.5% over the following 5 months.

The low VIX is a legitimate concern but your discussion would be a hell of a lot more valid if you weren't making up statistics to support your argument.

I stand corrected, the low vix and the inverted yield curve should be cause for some caution IMO.

 

[segv]

I have bought all of the vega I can afford, all that I am willing to risk. Very painful these last two sessions.

-segv

 

[IV_Trader]

Quote from segv:

I have bought all of the vega I can afford, all that I am willing to risk. Very painful these last two sessions.

-segv

long calendars or just pure vega ?

 

[DeltaSpread]

Quote from segv:

I have bought all of the vega I can afford, all that I am willing to risk. Very painful these last two sessions.

-segv

How far out are you? that really sucks. If you are looking out longer term, can you sell some higher strikes to at least reduce your cost?

Or it sounds like you are in a purely whole position with more exposure if VIX continues this trend and only able to get out with an increase in volatility?

 

[2006]

How come the DEC 11.00 Puts are only 0.35? Shouldn't they be at least .50 cents with vix this low?

 

[segv]

Quote from IV_Trader:

long calendars or just pure vega ?

Long Dec combos across much of the DJX. I was +disp but its almost insignificant after this session, all net +gamma +vega -theta. Long other series in various SPX and NDX issues. Its all well within risk constraints, but quite painful nonetheless these last sessions.

-segv