June 16th

During the day I gave you a couple of tweets - the first one was an observation that the VIX moved strongly up while the market was giving an impression to be will to break out to the upside. One or the other needed to change before a move could materialize. It worked out to be the downside in the market. I truly invite you to keep an eye open to intraday VIX readings they will tell you a lot after a while.

The second tweet was on a BGZ trade. See below - as I saw the VIX and SPX making separate moves I was anticipating a larger move one way or the other. Hence a Straddle in a Triple ETF. With the experiation coming up the ATM contract have an enourmous gamma - making them really effective for a long straddle. See the graph below.

The butterfly is hanging out - no remarks.

For all the NYC readers of the blog - be aware that Option Planet (the educational arm of ThinkorSwim) will have a free seminar on Portfolio Management in the city (June 22nd). If the market allows I will attend.