Long CBOE at 211.42 - some stocks LOVE volatilityCBOE is a stock that has held up unusually well during the tariff tumult lately. It's not that surprising - they benefit from all the hedging that everyone is doing with options. It hasn't really done much substantively since September, call it a 7+ month consolidation after a 75% run-up from March of '23 to September of '24. That "nothing" is something for the trading I do, that benefits from "noise" rather than trend. I have traded CBOE multiple times over the last few months and unsurprisingly, given the chart and CBOE's history, they've all been wins.
Historically, this trading method is 394-0 (real and backtested trades) on CBOE, so I expect a win, even in this difficult market situation. The average gain is 1.16% in an average of 6 trading days - that's .19% per day or about 4x the average historical daily market return. It's not a flashy trade, but it has always been a profitable one, so I"m taking it here. Another plus is 4 consecutive down days, which usually is a good short term contrarian indicator.
Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will probably use FPC (first profitable close) to exit any lot on the day it closes at any profit, though depending on how things go, I may let it run a little.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
