By Lawrence G. McMillan
Our publication schedule is back to normal now, after having altered it slightly in August.
Since the publication date is September 11th, we are including a brief special remembrance, in honor of the victims of the terrorist attacks on that day (both in 2001 and on that day in 2012, in Benghazi).
The feature article discusses the fact that recent historical volatility readings are near all time lows (certain broad market products have a 10-day historical volatility less than 4%). The article attempts to determine if these low historical volatility readings lead to profitable trading opportunities.
Our market comment is on page 6. Conditions are weakening, and if certain criteria are met, we are going to buy SPY puts.
The CBOE has enhanced its method of calculating $VIX. The new method is explained on page 7.
New recommendations include a put sale in U.S. Steel (page 8), an earnings-based dual calendar in ADBE (page 9), an ATK trade (page 9), and dual backspreads as a volatility trade (page 12).
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