Volatility Watch

Volatility is at a point where we need to start watching again. Remember I have been saying about the short volatility crowd? I am watching their movements extremely closely. If someone yells fire and they all make a run for the exit, it is going to be too late. You need to be watching those people who quietly slip out of the door, at the first smell of smoke.

VXX 4hr is showing signs of interest. I could take some call options on UVXY here and just wait for this to develop. The idea with options is you need to get in before everyone else catches on and get out again quick. You like to make a profit on the long volatility trade but at the end of the day, it is insurance for my long stock positions, so if it does not make money I am not bothered.

VXX on short term template. The problem here is the double bollinger bands are too wide. That is not giving me any conviction yet. I can take call options here and then add again if there is a higher probability entry.

SVXY 4hr some of the short volatility crowd are taking profit. This is inverse so when you are long SVXY you are short volatility.

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