Making Volatility Your Friend
Chris Kimble | Apr 22, 2014 10:11AM ET
From a volatility standpoint, the Volatility S&P 500 and CBOE Nasdaq 100 Voltility have traded in a narrow band since the start of 2013. At the end of January 2014, the VIX spiked up in a few weeks as Premium Members shorted the VIX buy purchasing XIV, which was on support. Soon after the buy, the XIV took off and fear levels fell sharply.
Right before the close last Monday, Premium Members established another position in XIV as it was hitting rising channel support reflected in the chart above. At this time we have a 10% gain in place as XIV is now nearing a resistance test.
Make fear tools and movement your friend -- it can really pay off.
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