SIRF’s Up
Big volume in SIRF June 7.5 Calls. 7000 have traded already, vs. open interest of 6200 entering the day. Big move in the stock also, up 14%.
Volatility has lifted from 73 to 83, suggesting calls are being net-bought.
Always keep in mind that not all option buying is smart. Not even close. How did those PSUN puts work out so far?
Anyway, more brilliance on the VIX just now. Bill Griffeth teases the feature by saying that each time the VIX has dipped below 20 in the past year, we have been off to the races. I thought he was referring to the market, in which case it was factually wrong. But turns out he meant the VIX was off to the races.
I believe that’s what they meant, it was incredibly confusing.
Just to reiterate a couple points.
Nothing magical surrounds a VIX of 20. Yes it is “low” if you define the range of the last year or so as the correct levels. I personally feel that way, but unclear that will prove correct.
They recommended (I think, kind of confusing) VIX calls out to fall.
How about a better and easier idea that actually lines up to the landscape they laid out (renewed troubles in financials)? Buy put paper out 4-8 month’s in like SPY or QQQQ or IWM. Not recommending that, just saying it actually hedges a portfolio, not to mention VIX Nov and Sep calls already price in a move back to 23 ON TOP OF the call premium you pay.