Trending back to the top of the channel, SPX breaks past yesterday’s high.  Volatility continues down. Question: Which is more likely, continued action to the upside or another hard shakedown tomorrow?

It has been difficult to make money buying index options volatility; but stocks, especially in the weeks leading to earnings, provide many opportunities for time spreads.

Himanshu’s rule, to buy calendars during periods of low volatility after two consecutive up days, is a maxim worth remembering.


AAPL under accumulation intraday by big players. Courtesy Pascal Willain


Taiwan, circa 1950.

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