SPX, VIX, and AAPL

Here are some quick thoughts/trading ideas for SPX, VIX and AAPL.

I issued a VIX trade alert this morning when the SPX futures were down only 4 points or so. At that point my rationale was that the VIX was basically at rock bottom, and the SPX was consolidating. The move to the downside has picked up a little bit with the futures now down 15 and the VIX up one-half a point. A look at a very basic daily chart of the SPX shows support about 20 points lower from here ($1,829 down to $1,809′ish).

With the VIX around 12.5, after hitting a daily low of 11.82, volatility is still quite cheap. The volatility of VIX options is also still very cheap. Combine those two things and it’s hard to get too badly hurt buying some VIX calls.

As for AAPL, since it’s gotten beat up lately I said last week that it’s probably time to rally. So maybe the stock rallies higher into the earnings announcement next week; but the weekly and monthly charts might not be so pretty.

Here’s the weekly.

AAPL_weekly_011314

 

And the monthly:

AAPL_montly_011314

As I said before:  being bearish on AAPL puts one in the same category as someone that hates puppies.  But if so many people like it, maybe it’s time to get out?  So, short term I’ll watch the calendar we have at the $550 strike and adjust/close it going into earnings.  On any decent rally up to resistance I’ll look at longer term bearish ideas.

Trade safe!

Greg
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