Monday, May 04, 2020

MIND THE VIX


If we are using SPY as our view of the overall market, it has to be put into context with what the VIX is doing. The VIX is up +3%, traders are taking a cautious start to the week, the VIX is still trending downwards. Without any real conviction in either direction, I will be flat for today until I see a better opportunity to participate.

May 4th, 2020, SPY S1 280 R1 295
With a high VIX/volatility, it makes finding cheap options to trade damn near impossible, not to mention a lot more risk to capital. It's a clear sign to me not to force any trades for the sake of being in a trade. It's 1120am in NYC, in today's choppy market conditions, I am content to call this day an early wrap. I will be back in the morning looking for an opportunity to trade.


VIX May 4th, 2020

"Be nimble, this market is primed to move big in either direction."


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