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

With the exception of a few odd takeovers, last week's financial news was all about the theater going on in Europe and assessing the probability of a Greek debt default.

Since the market had its 30 point sell off at the beginning of the month, many of my option mentoring students have lamented how poorly the VIX has correlated with the fall in the market place.

On Wednesday with increasingly poor economic news, the options market reacted with a 12-week high in the VIX. After closing at 18.26 on Tuesday, the VIX rose to 21.33 on Wednesday.

I do not think anyone would call yesterday a fearful session on any level. The fact that nothing happened, and SPX IV remained essentially unchanged should be considered a slightly bullish sign for volatility.

The VIX may have gained a little more than 1%, something those in the media will point toward as an increase in fear. As I look at volatility I do not seem much of an uptick at all.

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

Last week the major equity indexes looked oversold and the chances looked good for a short-term rally. Surprisingly the only rally attempt came last Thursday and it was feeble at best.

The VIX did something totally unexpected yesterday…It acted like It is SUPPOSED TO!!!

A snapshot of the upside and downside pre-market activity for June 7

As I have stated several times, I continue to be shocked by the brazen put selling that continues to go on. I am not sure where it stops.

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