Tuesday, May 5, 2009
Wildly bullish on the VIX
or Volatility Index ($VIX) and the last few weeks haven't changed anything but to make me more bullish. When one is bullish on the $VIX, this means one expects increasing volatility and thus, one generally expects the stock market to decline. Have I mentioned lately that I am bearish on the stock market?
The 3 year weekly chart of the $VIX below screams for a resolution to the upside. Those interested in going short via puts with an intermediate to long-term horizon should be buying at these $VIX levels, as we may not see them for a while. When the $VIX goes up, the price of puts goes up (all other things being equal).