Profit From The VIX Spiking

May 21st, 2010

I would have thought that the passing of the banking regulation would have sent the markets higher today – maybe they will maybe they won’t – but its not looking good early on this morning. U.S. index futures are dropping again and oil retreated on concern the euro region’s debt crisis will slow the global economic expansion. The VIX is still at record highs and got there very quickly. Remember all the warnings about a low VIX? Here’s a couple posts to refresh your memory.

As Predicted – VIX Spikes 30%

VIX – The Falling Knife

What’s Behind The VIX’s Big Fall?

Is The VIX Setting Up To Spike?

And here we are now, with the VIX near 50. Short calls here are easy money if you get in – I’m just saying! It wouldn’t take long for the VIX to come back down near the 30 mark if we start to see the markets rally anytime soon. That could be very easy and fast money for traders.

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