I am bullish the market post-election because then we can go back to the “rally on stimulus” optimism, and I am only slightly kidding… no, actually not kidding at all. While I am going to wait out the election before I deploy any new capital on my bullish watchlist (and there is a lot to like to the long side) I can take advantage of an oversold CRM (I am looking for stocks that don’t care who the next president will be… “election honey badgers”. I will leg into a 240/270 call vertical if CRM trades down to 230-235.
In this Trade of the Week I am looking at VIX call spreads. The VIX can be a notoriously difficult trade, but the setup is viable and explosive, so I am willing to participate with a conservative strategy. I am looking at the 25/30 call spread for November to work with the idea of multiple squeezes and momentum crosses into a volatile time of the year.
I like NET for a general long position based on higher time frames squeezes that could fire. I am buying the October Delta 70 calls, and won’t mind building into this position as we continue higher. Moving higher means those larger time-frames squeezes will continue to compress, and with upwards momentum it sure does put pressure on anyone short.