What Overbought Looks Like

Buy When They Sell

Time is not on my side today but learning is always a priority. Without further ado let us take a look at the VIX. It was reported by many writers over the last few weeks that the VIX has not been this low for quite some time. OK, that says one thing to me, buy.

I like to preserve capital but that doesn’t mean I’m totally risk averse. With that in the front of my mind I went to to the options market and bought 2024 March 17 VIX calls for a little less than $2.00, my average price. I chose the 17s because at the time it was the highest trading contract with largest open interest. Both criteria have moved a bit higher but I’m not one to chase. My calls traded at $2.75 today so I’m a happy boy. I do think the index will surge between now and the end of the year but no one ever knows so I’ll put a GTC trailing stop on them.

That’s It folks, the “down-and-dirty” of a good trade. I have more to offer in my book that is free with an annual subscription. Keep reading this Substack thread, follow me on LinkedIn and feel free to contact me at david@thetickeredu.com. I’m here to teach you how to invest and trade the “right way”.

Just like Tommy I want to know if you can hear me? Let me know as talking to a wall leaves a lot to be desired. One way is to sign up for a “paid” Substack membership. It’s only $99.00 a year and you get a free book priced at $59.99. It’s a signed, dust covered, hardback first edition and it comes with me. Like The Who’s Tommy, I’m a champion pinball player. Anyone can “See Me, Feel Me” and more. I learn by “listening to you” and trust you learn from me. Happy holidays everyone and my best wishes to all for a happy, healthy new year.