Successive hundred point drops in the DOW due to higher oil prices, caused a rise in the VIX from it's low of around 11; straddle buyers should be happy.
When she bottoms, she bottoms quickly. People get nervous before earnings season and in this environment of higher short rates and higher commodity prices, they may not want to risk a nasty surprise. So some will sell early and come back to buy after the dust settles.
Maybe the Summer will be interesting after all. The down days came on heavier volume in the DOW and left a lower high behind, hinting at an intermediate term downtrend in the stock market.
But in order to make that official, the DOW would have to drop below the 10,000 mark, making a lower low; not an easy thing to do without a small dose of panic.
And that's something the straddle buyer would love.
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