Afternoon Snooze
- Posted by Adam Warner
- on September 14th, 2009
Speaking of Fun With Numbers, I’d note another Monday where the VIX overstates the pathetic day for options. The VXX, down about 2.2% with the VIX unch., tells a more realistic story. VXX moves a bit less than half the VIX on a typical day, so that implies roughly a 4% dip.
Bottom line is a relatively modest gap that fills pretty quickly isn’t exactly going to terrify options shorts from selling.
Bought a little ERX vs, the position I notes Friday, then sold half back out around here. Always easier to buy tranche’s on gaps in hindsight, lmao.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Adam Warner is the author of Options Volatility Trading: Strategies for Profiting from Market Swings, released in October 2009 from McGraw Hill. (More) 
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