Image Source: Pixabay

I’ll begin by noting that the sad, sad VIX almost slipped into the sub-teens. Yes, with all the mayhem and horror and bad news in the world, the VIX has been beaten down so badly that even holding onto a level of 13 is considered frothy. What a joke of a market this has become!

The last meaningful earnings event of the calendar year is now behind us, and NVDA has given a huge gift to one class of people: options sellers. Basically, everyone who sold options, be they bullish or bearish, is going to do great. And who is NOT going to do so great? Everyone who bought the options! The stock (which, unusually, is down a little instead of raging to another lifetime high) is barely moving at all, and the vol crush is going to absolutely set aflame all the options buyers tomorrow at the opening bell, irrespective of their bullish- or bearish-ness.

I’m fully invested right now (although I’ve taken a bunch of cash out of my account since I do NOT trust this market) with nine stock-based options and one ETF position, which is the homebuilders fund XHB. This hasn’t broken down yet, but it’s a honey of a pattern, and I’ve got great hopes for it if it can only give up that trendline!

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