Morning Commentary Friday June 11th

by Mark Fenton on June 11, 2010

Will the VIX ever close under 30 again? I am beginning to think that we may be in this volatility range for a while so we must be adaptive. It will be interesting see what the upcoming earnings season does to market direction and volatility. For now just stick with our current plan for trade entry. One strategy that is beginning to look good again is the double diagonal. You can get wide with your trade structure and adjust the vega of the position by adjusting how close your long options are to your short options. The closer the long is to the short the higher the vega of the position will be. Don’t forget in this market to keep your daily plot flat as you can.

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