The stock market continues to fluctuate wildly, and the VIX, a measure of implied volatility is sticking above the 40% level. That’s down from the recent high of 85% but still well above normal levels, but still ranks in the top 10% of all-time readings.
This means options’ premium is all plumped up and ready for feasting upon. Two weeks ago, with daily moves in excess of 6%, trying to predict a bottom, or even how high a bounce might rise, seemed a fool’s task. But, it now looks like the “SPDR 500 (SPY)” has found a range, albeit a large one, between the recent low around $230 and the resistance from the $295 gap down.
The trade I will focus on is in the SPY with expectations that it will remain between $230 and $295 for the next few weeks.
But, before I get to the specific trade, let’s discuss… Continue reading at StockNews.com