VIX over 14 today, what does it mean?

Doesn’t mean much yet! What has happened is we have had 2-3 days in a row  where SPX has backed off the highs of $2120 a bit. Too get the VIX cranking up near 18, we would need 2-3 more days down with a little more speed. What do I mean? We need 2-3 days down where SPX moves 1.25% or more, over 25 points in a day. That would stir up VIX and get it moving toward 16-18 level. With Volatility levels still relatively cheap, if I needed to adjust a short Vega trade like an Iron Butterfly, Put Credit Spread, or Iron Condor, I would adjust my position deltas with a long put in today’s environment.

Wrong Data on AAPL , new prices and strikes for Bullish Butterfly

I apologize, used wrong price information on AAPL. Was looking at AAPL in our back testing software and had the wrong date. What to do today. AAPL is backing off again today and sits around the $126 level. Shock? No, the stock is still up 15% over the first 4 months of the year! I still like the stock and am comfortable in this 124-126 area establishing a slightly bullish limited risk strategy like an Bullish Call Butterfly. Focusing on the calls in the May 29 expiration series. I’m considering this Bullish Call Butterfly. Buy one 126 strike, Sell two 128 strike, Buy one 130 strike. Total debit is $20. If I do the trade 1-2-1, total debit or cost or risk is $20. If I do the trade 10-20-10, the total debit, cost, or risk is $200.

TWTR Perspective

TWTR is currently at $39.40, down from 53 level about 3 weeks ago. Low in the stock the last 6 months is around $35, this level was reached in early December. That’s a 26% drop from the $53 level! I am looking at a cheap play for a slight up move. Looking at May 29 expiration Calls, about 30 days from expiration. Buy one  40 call  Sell two 42 strike calls  and Buy one 44 strike call. Total Debit or cost of $25 per spread. If I do the trade 1-2-1, the cost is $25. If I do the spread in a quantity of 10-20-10, the total cost would be $250. This is a bullish butterfly and costs me very little to speculate on a neutral to slightly up move in TWTR over next 2-3 weeks. Most I would pay for this Butterfly today would be about $30.