There was absolutely nothing good about today’s market environment…

DOW made a new low for 2008 and ended at the bottom of the day’s range on increased volume.  And while the NAZ has quite a ways to go to match those lows and the S&P is still ~23 points from its 2008 lows, there was little to be positive about.

The VIX did rise ~2.75 points, but it didn’t come close to any kind of a spike upward which would signal any possibility of a reversal.

It looks more and more like an ugly summer is ahead and we are continuing to hedge tightly ST to take advantage of high volatility and downside hedges.

Coach BD 

In January, with the VIX hovering around 10, we entered a Long Call VIX position that would hedge our long portfolio to a ~20% decline in our collective long positions.

As we added long positions over the course of the year, we also added to the VIX position to keep us at a ~20% overall hedge to our portfolio.

We also took advantage of opportunities when the VIX spiked in FEB, AUG & early NOV to sell OTM premium for additional income and profit.

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Our VIX hedge is ongoing and this position alone has contributed ~25% to our overall profit in our long portfolio.

The Trade Coach believes that the VIX product provides the most efficient market hedge avaliable due to its overall efficiency, cost and dynamic nature.  We also use individual stock hedges with more volatile issues, and where we can apply them cost effectively.

Coach BD

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Specific discussion about our VIX strategy and activity is reserved for Subscribers only.  

In this area you can review and discuss our ongoing Market & Portfolio Hedges.

This area is reserved for Subscribers only.

The Trade Coach