I nearly tripled my VIX call options after I had followed the notorious 50 cent trader into a $5M bet that volatility had bottomed around 18 a couple weeks ago.
https://imgur.com/gallery/wMq3Va9
I took profits on that trade when the VIX was around $30.
Now that volatility is back around these levels I believe we could see another spike in volatility. Obviously the banking crisis has been talked about at a lot, all that uncertainty definitely contributes to higher volatility.
https://imgur.com/gallery/vFcmIxd
Quickly for those that dont know a VIX around 20 means markets are somewhat stable. A vix around 30 means markets are fearful. That fearful reading can be much higher though in periods of extreme fear for example during 2020 the Vix shot up to 85 during at the height of covid.
Now that we are back down around this $20 level on the vix I believe we could see a move higher. As you can see over the past two trading days we came down to test this 20 level and the vix moved higher each time.I think the bottom is in for the vix and given the bearish headlines we seem to be getting nearly every day I think markets could become much more fearful over the coming weeks
I have bought back into the $50c 5/19 Vix.X calls I originally called out and will look to cut once the vix reads fearful levels once again which as I explained earlier in the video would be levels of 30 or more.
The SPY has been seesawing around the 200 DMA on the daily chart which leads me to believe the possibility of more downside technically makes sense.
[link] [comments] https://www.reddit.com/r/stocks/comments/120zcjt/the_bullish_vix_reading_that_i_called_out_a/
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