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

This just in, when volatility pops, calendars tend to lose and lose big.

Friday's sharp price action saw the S&P 500 shed nearly 1.8% and the NASDAQ fall by almost 2.5% ? wiping out much of January's gains.

It is common knowledge to most traders that when the market rallies implied volatility tends to fall.

With the continued turmoil in Egypt the market has seen a nice uptick in implied.

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

Images of rioting in the streets of Egypt renews contrarian thoughts made famous by Baron Rothschild, the 18th century British nobleman and member of the Rothschild banking family, who is credited with saying, "The time to buy is when there's blood in the streets."

One of the things I am constantly trying to explain to my option mentoring students is what the VIX really represents.

One of my option mentoring students favorite earnings plays is AMZN.

This view just after the open helps identify stocks that are gapping up or down early and might present early opportunities.

I teach my option mentoring students that for the most part, when the market goes up, implied volatility falls.

Options Insider Newsletter readers make the choice in the Product of the Year award.