There was upward volatility again last week. The intraday trading ranges for SPY were 3.43, 6.99, 2.89, 2.67, and 3.99.

The hi-lo for the week was 13.70.

Last week's SPY & QQQ straddle were winners.

This week's SPY 08Sep23 451 straddle at 6.62 looks like a winner even with a four-day week.

The VIX futures are firmly in contango.

Contango is a situation where the futures price of a commodity is higher than the spot price.

It's tempting to establish a purely bullish position.

At some point, the market will backtrack. The upward moves are happening quickly enough to cover the cost of the straddle, so that might be the best bet right now.

That way if the market does backtrack you can profit on the downside both directionally and with the pop in implied volatility.

Earnings announcements were watching this week: KR on Sept 8th.

More By This Author:

A Look Ahead At Trading Week Aug. 21-25
Demystifying Options Markets
Thinking Options For Trading Week Aug. 14-18