Condor Options

Heavy selling into the close, Dow off 280 points. Bad, bad breadth, a lot of it the Nasdaq’s fault.

VIX has a 24 handle, just ticking up a bit today.  You’d think that when SPX is down 1.6% in a day, front month volatility would have something to say about that.  But then maybe people are getting used the idea of bearishness.

In any case, here’s a notion.  Sell the 17/18/30/35 VIX Feb IC for $0.85.  VIX isn’t going to close above 30 at Feb expiration unless the bottom falls out (and probably not even then, we still get bounce days), and there seems to be a firm floor now around 17-18.

Please, don’t actually put on a trade like this unless you’re a total cowboy.  Enough said.

[tags] VIX, DOW, volatility, iron condor, options, trading, SPX[/tags]