Once again we had a week with a lot of action, but not much actual change. The VIX made a new high on Friday, but fell off today. I have been taking the VIX trade off slowly, still have about half.
The GS Sep put trade worked out great. It's now worth about 600 points. Probably best to book it now, or at least to roll up the bottom strike from 130 to 150. I'm getting out. In the future I'll detail these sorts of things as full trades, not afterthoughts.
Little to say in the relatively quiet world of commodities. However. I've bought cocoa again. Like last time, it's best to stay with the pure commodity, not equities. The basic rational is the same as before: this is a long-run demand-pull bull market that will give good long side trading opportunities. I have discussed this several times. The only thing that has changed is that speculative selling has pushed the price down to a cheap level.
I'm also thinking of adding to the oil trade. The hell in the quant space has led to a lot of forced selling, and these things are cheap. If I do, it will be on a market-neutral basis.
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