Volatility product VIX is up around 25% today! Tom says a monster spike like this will work against a lot of the yutes’ existing trades (increased volatility doesn't do short positions any favors), but it creates a lot of new opportunity. It’s a fear index: when the world gets scared, that’s the most opportunistic time for traders.
E wonders if he should get more aggressive with his existing positions at a time like this, but Tom says it’s more about:
E and Kay make some defensive moves, rolling their untested calls and puts up and down ( thus collecting more premium, and reducing their cost basis), and finally look for some new trades to put on!Bonus Lesson: Tom explains that based on tastytrade’s research, the average length of a VIX explosion is usually between 3 and 5 market days.
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