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Stocks are fractionally lower today as some silly comments from the Greek Finance minister might have upset the apple cart.  With VIX in the 13s and skew sky high it does not take much for stocks to swoon.  Even with stocks down as I write this near the close, VIX cannot muster green for the day.  That is right we have SPX down, VIX down.

There is a slight hangover in internet stocks as TWTR, AMZN, NFLX and FB are all giving back some recent gains.  This might be due to the new FCC regs but nothing for sure.  It is enough to keep the NDX from marching back to all-time highs.  A stock that is making a comeback is GE. 

LivevolX (r) www.livevol.com

Paper in GE has been buying up calls as the name has run from $24 to $26 recently.  On a down day, GE is up again today.  Customers bought longer term calls to the tune of 99k today in the Jan 2017 cycle.  Maybe the fortunes of one of the oldest companies in America are back on the march.  IV is still cheap.  Somehow money will find stocks that are flat when the index is at an all-time high.

The lesson

Cheap IV is nice when one want to buy near the money or just in the money calls.  OTM call time spreads offer a way to buy cheap calls too.

The Trade

GE has gone nowhere in a year as the SPX has risen 10%.  Buying cheap just OTM call time spreads in the GE Mar/Apr cycle should work ok.

Disclosure:  VIX positions

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