Last week we wrote a post on how AAPL implied volatility was in the toilet. At that point in time AAPL was at its lowest level since the early 2000's. Well, AAPL did one better late last week as the IV fell to the lowest level I have on record.

This is a follow up to the "Understanding Option Skew" article I wrote last week.

Since the books are closed for January, it is time to update the January Barometer, also called the January Effect.

Traders, something HAS to give in this marketplace.

Getting to a number in stocks and indexes is important: AAPL at $500 (oh sorry, not yet there, but are there doubts?), the Dow when it first crossed 10,000 (the second and third time not as fun), and the VIX below $20.

Volatility is often discussed as a single number. In the real world, the volatility of each strike price and in each month is different than the neighboring one.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.

As a single cyclical indicator for the global economy, it would be hard to find one better than the sales, earnings and stock price of Caterpillar.

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities

Last week we mentioned the seasonal January tailwind that was expected to continue through the end of the month unless interrupted by another negative European event.

I have been saying for some time that I thought we were going to touch 1300. Now that we have, where are we going from here?

Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.