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

While much of the financial world was anxiously awaiting word on the German Bundestag vote last Thursday, news began appearing about a slowdown in the Chinese property development sector and that the authorities thought cutting off credit to poorly managed developers was desirable as they were intending to encourage consolidation in the sector.

The SPX took the dive I expected yesterday, but, I don’t think that is the end of it because IV is still ramping up

Traders, I have two points to make today. First, I see little to celebrate in yesterday's market movement. The SPX closed up over 2%, and the DOW was up almost 3%, but the VIX did not move in the same manner as SPX.

In this Digest we offer some thoughts on gold and new ideas that should be less dependent on the near term market direction.

On Thursday, the Bundestag will vote on the bill to reform the European Financial Stability Facility (EFSF).

Are you one of the many people who believe in mean reversion? Do know that the VIX is eventually going to 20 and unlikely to sit perfectly still at 32-33 over the next few days?

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

Despite being rocked once again by negative news from Europe, equities were somewhat better last week.

I have often said that in order to win playing options directionally traders need to be right twice

Yesterday on my podcast 'The Option Block', my co-hosts and I were talking about the massive turnaround. This led to a discussion about what assets were risky in relative terms.

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