Preparing For The Next Bout of Volatility
With that we saw volatility, as measured by the CBOE Volatility Index rise to it’s highest level in over 4 years, testing 50 from a reading of 12 just 3 days prior.
MSCI All-Country World Equity Index vs CBOE VIX
Buy The CBOE VIX
Technically, we saw a break of the long term downward trend and with a re-test of the breakout level currently taking place, giving traders a second opportunity to take a long position.
Here, my idea would be to buy an Out-The-Money Call Option on the CBOE Volatility Index, taking a 6 to 8 week view with the expectation that we may see another move lower on global indices and another spike in volatility.
Buy OTM Call Option on CBOE VIX
Expiry Date: 18 April 2018
Underlying level: 20.60 (last close)
Whilst searching for employment after his had contract expired, he made the decision to document his ideas for his personal passion which was financial markets with a view to build a public profile and record of all work.
His passion for investment and market-related content dates back to his love for reading having started to notice the financial market data alongside the sports pages as a university student in 2004.
Lester is Trading Desk Analyst and has been with Unum Capital since July 2016.