Friday, February 24, 2012


For those who don't know what VIX is, let me explain. The VIX is the volatility index, meaning as long as stocks are holding up, the price of the VIX will drop. However, when stocks stop appreciating and pullback (even when its healthy) the VIX rises.
There's an old saying with VIX: "When VIX is high it's time to buy, when VIX is low its time to go (or let go). REMEMBER this saying. 

The VIX has been going down down down for the last few months and is near lows. Meanwhile the market is in need of a pullback in the next few weeks. So I picked up some VXX (which is an etf that trades w/vix) april 30 calls for 1.37. 

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