Trade Alert!

The market rally yesterday caused the VIX to fall to 11.92. Take a look at a long term VIX chart and this is an extremely low level and in my opinion a great risk reward trade. Little downside risk and potentially huge upside gain. The major threat to this position is theta loss.

Warning! When you enter a long VIX position you have a tendency to root for worst case scenarios (VIX & SPX are inversely related) , the president of Iran can be your best friend in this situation. Be careful in public about voicing any hopes that Iran comes out with a nuclear weapon.

For those who don't know me I tend to be pretty sarcastic at times ;)