Quick Update on a Quick Trade

As I speculated in my last post, we saw lot of volatility but VIX is settling down to lower levels after spiking up to 36. Given that this was the last time VIX spiked up to and the FOMC meeting happening tomorrow sure to deliver some more positive news to market (they really don't have any other option), I am dipping slightly into some VIX trades as the market is forming a short term bottom here. Please remember this is not yet a complete confidence in Market hitting the long term bottom. But I think we have a tradeable bottom here. I might close this trade as soon as I realize profits of 30% or better which is quite likely as early as tomorrow or by end of this week. I will also put a close stop on this trade so that I don't take a negative hit by more than 20 %.

Here is the trade (please enter this only if you are an options trader. If you are not an options trader, you could bet on index ETFs such as IWW or IWM to play the Russell 2000 index on the long side)

$VIX.X April 30 Put options - Purchase price 3.75 or better (My purchase price as of now is 3.65)

Good luck
Krish