Markets saw their first losing week in a month, driven by escalating tensions in the Middle East and fears of a strike on Iranian oil facilities. Despite this, strong economic fundamentals, positive GDP growth, and jobless claims offer a bullish outlook. The Federal Reserve is continuing gradual rate cuts, and seasonal trends point to a market recovery in November after a typical October dip. We hold positions to benefit from these patterns and expect the VIX to settle back to mid-teens levels soon.

Short The VIX: Get Yourself an Early Christmas Present

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Black Swan Party

Tue September 17, 2024

Short The VIX: Get Yourself an Early Christmas Present

The Federal Reserve’s upcoming rate decision may bring volatility, offering a strategic opportunity. Despite market uncertainty, fundamentals remain strong with rising industrials, job growth, and revised GDP. We expect the VIX to drop to $12-$13 by December. Position yourself with $VIX puts and $SPX call options to take advantage of the year-end rally.

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CBOE Volatility Index (^VIX) Option Idea

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Israeli Response to Iran and Port Strikes Unlikely to Derail a Strong Bull Market

Short The VIX: Get Yourself an Early Christmas Present

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