Traders,

Monday’s market meltdown had a silver lining. The CBOE Volatility Index spiked. Though the VIX retreated into the close, it still closed up 16% on the session, leaping from 20.60 to 23.8. It was the largest single session spike since mid-June and signaled fear’s return.

While those enjoying the relative calm were more than annoyed, premium sellers rejoiced. Higher VIX readings mean bigger paydays for options sellers. Traders deploying covered calls, naked puts, credit spreads, and the like were starting to see premiums dry up. The lower paydays resulted from a calmer market and less anxiety among investors.

With yesterday’s stock swoon, options premiums swelled, and put selling suddenly became interesting again. Sure, the market may continue lower, bringing even better put selling opportunities, but it may not!

Video Of The Day: [Webinar Replay] How to use the MACD indicator for Swing Trading

In this webinar, Coach Matt will teach you how to properly use the Moving Average Convergence Divergence Indicator (MACD) as secondary confirmation for both bullish and bearish swing trades.

Chart of the Day: CBOE Volatility Index ($VIX)

Return of the VIX spike!

Tales of a Technician

Position Sizing Your Portfolio

Today’s video walks through how I think about position sizing a portfolio using core vs. non-core positions.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30 PM EST to discuss the markets and help you prepare for the week.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

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