It was a strange day today where the bullish and bearish parties had to agree on a draw. The VIX has continued going higher which suggests that the tension and the overall market risk is increasing.
However, for options traders the higher the volatility is the lower the risk because the premiums are higher making it feasible to place trades with wider strangles.
So what's my trade for today?
#BMY (#BristolMyersSquibb) It's a 160 billion dollar company that dropped 12% in a week so naturally the volatility jumped high. Hopefully the stock will settle down around the current price level and due to the elapse of time and the drop in volatility I will be able to close it within a week.