Historic Volatilty

This entire week has been insanely volatile. Moves up or down 3-5% a DAY seems normal. A month ago, if we saw that the indexes moved 1% a day it was considered a wild day. Just strange how trading expectations change. The RVX hit an all time high near 50!



and the VIX same levels.


I've been trading the RUT for some time now, I thought that RSV in above 27 was high. Now I'm seeing front month vol above 50 and next month vol in mid 40s.

Monday (9/29/08)was an historic day. The indexes were down 5-6% in a SINGLE DAY. Listening to traders and reading blogs, everyone agrees it was just scary for those in trades. Most people were in the red for September. Fortunately I wasn't had no positions open during the volatile days earlier this week.

During most of the bumpy ride, I was Sit on Hands (SOH). Sometimes the best thing to do during a volatile time, is to do NOTHING.

Today, I entered into:

SOLD -1 IRON CONDOR RUT 100 NOV 08 700/710/640/630 CALL/PUT @7.04 CBOE, RUT MARK 651.00,


My down side is at 640 and 700 on the up side.