Don’t Get Tricked by Low $VIX — Plus, This Week’s Options Jam Session

Quick note before we get into this week’s Jam Session:

Yes, volatility mean-reverts. But don’t get caught assuming that just because $VIX is printing multi-month lows, it must spike soon. That kind of thinking can get you chopped up.

Mean reversion is most reliable after volatility spikes — not before. Betting on vol coming down from elevated levels is a far better edge than betting on it spiking from subdued ones. Don’t force that trade.

Now, onto the portfolio.

It’s been another strong week for bulls. I’ve had only two exits in All Star Options since last week’s session — both losers. And I was quick to cut them. Why? Because in a market this strong, I have even less patience than usual for trades that don’t work.

If a bullish idea can’t get traction in this tape, what are the odds it’ll work in a trickier one?

I’d rather free up that capital and redeploy into names that are working — or setting up to.

In this week’s Options Jam Session, I walk through current positions, update stops on a few winners, and highlight fresh setups I’m eyeing.

Let’s stay focused and keep pressing our edge. It’s a bull market. Let’s trade like it.

Sean McLaughlin | Chief Options Strategist, All Star Charts