Options Trading Webinar: How to Trade Volatility and Futures
With the VIX on a wild ride since late August, it was time to discuss some strategies around how to trade volatility, which, yes, is doable. Volatility has been with us and rising since the end of July, and it hit a crescendo in late August when the market crashed down hard. A recovery and base-building is starting to occur, but it’ll be a long process. Naturally, in the month where markets come to “crash” and so much uncertainty, that will be a difficult achievement. Let’s remember, October is also where market bottoms are often made.
While we were on the topic of trading under difficult circumstances, it seemed natural to also discuss trading futures, a strategy that we have put to good use at Explosive Options in September. Our portfolio is up 43% YTD, with big gains in September, so we know our strategy is working! However, we must be diligent, focused and open-minded, because trends can change on a dime. We do not want to be married to a particular stance or position, as the markets can twist and turn us in ways that will turn us into a pretzel. We will let the charts/technicals guide our moves accordingly.
This Week’s Market Action
Our discussion of volatility really couldn’t come at a better time, as we had some violent action to the downside on Monday. As a result the VIX surged both Monday and Tuesday. Sentiment remains bearish, puts/calls are elevated while put buyers are active, and the oscillators are nearly oversold.
Of course, now we are in the notorious month of October when crashes tend to occur. The market remains on shaky ground, but we are playing it accordingly.
Watch Bob Lang’s Options Trading Webinar on Volatility and Futures
Watch the webinar to learn how to trade volatility and futures and get an update on this week’s market activity.
If you love the insights you gained in this webinar, don’t miss your chance to join us live. Each week I host a FREE options trading webinar during to discuss recent market action, current plays and charts of interest, along with the trends that may affect future action. Join us live and get your chance to ask your own trading questions!
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