True IF the Vix gives some back tomorrow. That's an assumption, but in this case, I would tend to agree, as the Vix has shot to an "overbought" level near-term.
*Although we must always keep in mind the saying that "something can remain overbought/oversold (or substitute the word "irrational") longer than you can remain solvent.
The VIX is up over 4 1/2 points to nearly 25.
So what does that mean? Let me take a shot at this (please tell me if you feel I am off course).
This is a good day to sell calendars positions that are starting to go into the bad neighborhood because IV is up and if IV lowers tomorrow without a underlying price reversal my Calendar will be worth a lot less.
It is a bad day to buy back Iron Condors because you sold it for a credit when IV was low and would now be buying it when the price is inflated due to high IV.
Conversely it may be a good day to initiate an Iron Condor while IV inflates the price I open it at for a credit.
Does this make sense to you?
Leo
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