Disclaimer
This is for informational purposes only.
Discussion
Trade: Sold half of the QQQ September 29 $370 put position.
Rationale: I don’t like how VVIX continues marching lower today ahead of AAPL and AMZN earnings tonight. I continue to believe it’s absurd those two names can spike the entire market given how poorly the reactions have been this earnings season, so perhaps something else is afoot like the Fed coming in to support the market in some fashion. Who knows. But VVIX behavior likes this tends to precede a spike, even if it’s just short-term.
As discussed this morning, the window to SPX 4400 is open into early next week ahead of CPI on August 10, so I would look to re-enter this half of the position on a spike higher perhaps on an in-line NFP and cool AHE tomorrow morning.