As Our Poor Young Lungs Deflate

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I probably gave the impression from my prior post that I was shutting down until Friday. That wasn’t quite my intent. Truth to tell, I had that post in the hopper and planned to deploy it at the close on Wednesday since, yes, you WILL lose me until Friday morning as I attend to family duties. However, I found myself in the midst of a monster grocery run on Tuesday afternoon, and I went ahead and published the post just to get something – anything! – out there. Anyway, I’m still sort-of working, so here’s one last post for Tuesday.

I’ll begin by noting that the sad, sad VIX almost slipped into the sub-teens. Yes, with all the mayhem and horror and bad news in the world, the VIX has been beaten down so badly that even holding onto a level of 13 is considered frothy. What a joke of a market this has become!

The last meaningful earnings event of the calendar year is now behind us, and NVDA has given a huge gift to one class of people: options sellers. Basically everyone who sold options, be they bullish or bearish, is going to do great. And who is NOT going to do so great? Everyone who bought the options! The stock (which, unusually, is down a little instead of raging to another lifetime high) is barely moving at all, and the vol crush is going to absolutely set aflame all the options buyers tomorrow at the opening bell, irrespective of their bullish- or bearish-ness.

I’m fully invested right now (although I’ve taken a bunch of cash out of my account, since I do NOT trust this market) with nine stock-based options and one ETF position, which is the homebuilders fund XHB. This hasn’t broken down yet, but it’s a honey of a pattern, and I’ve got great hopes for it, if it can only give up that trendline!

The rest of the week is probably a snoozer:

  • Wednesday, regular hours but very quiet session (Umm, couldn’t they make THIS the shorter day, since everyone is so busy getting ready for Thursday!!!!!?)
  • Thursday, closed, obviously
  • Friday, half day, shutting down three hours earlier than normal
  • Saturday/Sunday, I stare off at the horizon wondering what to write

I’ll see you folks Wednesday morning!