Karpel’s Corner: Bullish Banter

Welcome to the inaugural post of Karpel’s Corner. This is where I will throw out my thoughts on the markets and share some of my favorite strategies. I will keep it market focused, but won’t miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Bullish Banter: Higher Highs, Higher Lows

With the annual Running of the Bulls in Pamplona, Spain a little more than a month away, I started to think about how not to get gored by the mighty bull market we’re in now. More importantly, how can I take advantage of a shift in the market?

So, I looked at the VIX, more specifically the VVIX (which measures the volatility of volatility), to see if there is increased concern or expectation of violent moves.

Yesterday, the VVIX was down 0.65 percent at 66.93. This keeps me in my longs for now, but it would be uncharacteristic to see this move to the upside — a POP in VVIX. If I see that, strategies like put calendar spreads could become a nice opportunity.

Take a look at these bearish candidates with a 0 score as potential candidates.

See you next time at Karpel’s Corner!

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