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

Pricing in selected commodities seems to have lost touch with the reality of supply and demand fundamentals.

Option traders, the market was down more than a standard deviation today based on yesterday's closing VIX (more if we are looking at ATM IV). Yet, the VIX rallied a measly .4% what gives?

"In every game of poker, there is a sucker. If you do not know who the sucker is…well…then it's probably you."

When SPX skew gets this out of whack it is not going to be there for long.

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

Last Wednesday Ben Bernanke was clear, the Federal Reserve intends to keep interest rates at the current low levels for sometime probably for the next two meetings of the Federal Open Market Committee meetings.

As I have often said, anytime I see SPX front month fall more than 2% below SPX second month I begin to look for opportunities to put on short time spreads.

Today, I would be remiss if I didn't discuss what is going on in SLV. The ETF is on the rally, but the option implied volatility has exploded

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

Market review with a volatility twist

The SPX Launched Upward yesterday and never faltered. As in most cases, when the market was up, the VIX was down.