We were in a free fall again but the market miraculously bounced back. Where it's going to go tomorrow? Nobody knows. But I would caution everyone to go long on anything. The situation around the world is pretty alarming and I fear that we might see a flash crash soon. Hopefully I am totally wrong.
So what's my trade today?
With the VIX so high and many of the stable companies are already getting pretty cheap, it's relatively easy to pick a prospect for a wide strangle. For today I selected #IWM ( #Russell2000 ), which covers 2000 companies. For many years I couldn't trade it because the IVR (volatility ranking) was so low that it was not worth it. But now, the IVR is at an insane level so the risk/reward ratio is phenomenal.