9.29 VIX and it feels like we are putting the holiday in to the SPX IV already. 9 VIX does put me into a bit of a buying mode so I started going through my list of names that should be at lower IVs over the next 90 days. And low and behold I did not find what I thought I would find.
Sometimes clients ask me what trading in the mid-to-90’s was like and I tell them, “fun”! There was Long Term Capital and the Russian Debt crisis but really those were small blips in the rally. The big internet boom was booming and aside from those sharp but short drop offs stocks flew and volatility went up with it. There were many days when stocks just took off for $50 rallies and then did it again the next day.
Stocks continue to rally with the earnings surprising just about everyone. Day to day the SPX finds a way higher and higher for no apparent reason. The squeeze in commodity names has the whole sector trading again. Witness the dead turnaround in the miners today. If all that excitement is too much for you, boring old INTC might work.