Buckle Up for a Ride on the VIX
As this move up feels like a spike and not a swell, this is why I'd buy VIX puts.
The Volatility Index VIX.X is up to $19.30, however, Thursday has the feel of a spike, not a swell.
This means I think the selling might last another day, but probably not weeks and weeks. When this happens, typically we get a run higher and implied volatility gets crushed. I would be a buyer of VIX puts.
The July 17 puts, which were two dollars in the money on Friday are only $0.40. These are a buy. I would be targeting at least $1.00 on these.
Trade: Buy to open one VIX July 21 $17 put for about $0.40.
At the time of publication, Sebastian had positions in the VIX.