Guest Corto Report post Posted November 21, 2012 Not necessarily good for SO strategy, and the past couple months seems to bear this out across a lot of trades. -------------------- Based on the moribund price action in the CBOE Volatility Index (^VIX) someone forgot to tell options traders to be "afraid" during the most recent pullback. Despite a 5% drop in stocks since the announcement of QE3 the VIX never exceeded 20. Compared to moves over 25 earlier this year and over 45 in summer of 2011 it seems like traders are positively catatonic. Ryan Detrick of Schaeffer's says the drop in the level of the VIX isn't for lack of activity. His firm noted 700,000 call options on the VIX trading immediately prior to the Presidential election as players looked to get an edge on any major price moves. The market moved sharply lower but volatility didn't spike, limiting the upside of vol bulls. Detrick says it's time to get used to it. -------------------- http://finance.yahoo.com/blogs/breakout/don-t-short-low-vix-market-131924965.html Share this post Link to post Share on other sites
