Trade Alert: Buy this $1 Call Spread to Ride the Next Wave of Volatility

Shah Gilani Aug 16, 2022
2 

This bear market rally has taken all of us for a ride. The S&P 500 is now up 11% since mid-July and I am seeing some investors relax a bit – maybe a little too much. Especially now that the CBOE Volatility Index (^VIX), a unique measure of market volatility, is plumbing a 20 handle (its 20-year average).

^VIX’s value fluctuates with volatility – rising and volatility rises, and so on.

Seeing it fall below its 20-year average may be encouraging some to bring money back into the stock market, but what I am seeing is a different opportunity all together.

Because I don’t think the ^VIX will stay this low for much longer.

Watch today’s video to learn more or click here to see today’s trade instructions.

Today’s action:

Buy the September 21, 2022 ^VIX $22 Calls (VIX220921C00022000) and simultaneously sell the September 21, 2022 ^VIX $23 Calls (VIX220921C00023000) to create a call spread.

2 replies on “Trade Alert: Buy this $1 Call Spread to Ride the Next Wave of Volatility”

  1. Kosi Avotri says:

    What is the exit strategy?

  2. Rajiv Ranjan says:

    There are other experts recommending a similar trade.

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