Double Top VIX
Recently, markets have been trending aimlessly, flirting between support and resistance. Granted this is the best market for Iron Condor trades, but the volatility could easily burst any legs within a week. I have not look at any condor trades but might start looking. I met up with an old pal of mine and he have been doing well writing covered calls on Citigroup.
Citigroup seems to be a good option for him since its cheap at USD 5 and writing 600 call contracts requires him to have 3k USD.
What does a double top in the VIX signify? I will say it could go either way. A triple top in VIX seems rare, but the MACD reading seem to show that upside to this is possible short term wise. A move lower could prove to be a catalyst for a sideways market or the freaking bottom everyone is trying to call here.
Related posts:
- Iron Condor explained
- Butterfly Spread explained
- Trading Log:Capitaland fails to sparkle
- Understanding Options – Profit (loss) vs Price Graphs
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