📊 VIX Trend (Past 8 Weeks)
|
Week Ending |
VIX Level |
Trend |
Market Sentiment |
|---|---|---|---|
|
Feb 9, 2024 |
13.8 |
📉 Decreasing |
Low volatility, bullish market |
|
Feb 2, 2024 |
14.2 |
📉 Decreasing |
Steady market, lower option premiums |
|
Jan 26, 2024 |
15.5 |
🔄 Flat |
Neutral, decent premiums |
|
Jan 19, 2024 |
16.3 |
📉 Slight decline |
Moderately low volatility |
|
Jan 12, 2024 |
17.1 |
📉 Dropping |
Market confidence improving |
|
Jan 5, 2024 |
18.8 |
🔼 Rising |
Start of year volatility spike |
|
Dec 29, 2023 |
17.9 |
🔄 Flat |
Holiday period calm |
|
Dec 22, 2023 |
19.3 |
🔼 Slight increase |
Pre-holiday market caution |
🔹 Key Takeaways
• VIX has been trending lower for the past 8 weeks, hitting a near-term low of 13.8 last week.
• This suggests a strong bullish sentiment with lower market fear.
• Low VIX = cheaper options premiums, meaning covered calls and cash-secured puts generate less income but carry lower risk.
• If VIX spikes back above 18-20, premiums will rise, making it better for selling options but riskier overall.
🛠️ Best Options Strategies Right Now
• If VIX stays low (13-15):
✅ Sell covered calls on stocks you already own → Lower premiums but stable income.
✅ Sell cash-secured puts on quality stocks → Buy stocks at a discount with minimal downside risk.
• If VIX rises back above 18-20:
✅ Sell farther OTM (out-of-the-money) puts & calls to capitalize on higher premiums.
✅ Consider shorter expiration dates (1-2 weeks) to avoid volatility swings.
Final Thoughts
Right now, the low VIX favors a steady income approach rather than aggressive premium selling. If volatility increases, we’ll adjust strategy accordingly.