This week, the SPX has been between 2700 and 2723 if you just look at the closing prices of SPX this week and today. Big Deal?  No.  Twenty three  point range in a $2700 vehicle over the last 4 days? No big deal. Let’s look closer.  Monday and Wednesday had huge intra-day  price ranges, that’s a big deal if you have positions on. Monday had a 44 point range intra-day from 2698 to  2742   and closed at 2717. Wednesday this week had a range of 2699 to 2746 and closed at about 2700. When you see intra day ranges between 45-55, that’s huge. Those are the types of ranges you saw at the beginning of the correction in early February. That makes trading short term trades very difficult, especially if the IV is rising. With the VIX at about 18.39 as I  speak,  I am a little more comfortable with putting on short term , short Vega strategies like Butterflies and Iron Condors  , even with intra-day ranges exploding, why? Because I am now getting some compensation for the volatility in terms of farther ranges in my Iron Condors and cheaper prices and wider Break even points in my […]