From one of my trading colleagues, I was told of the story of one professional who was force to sell out his entire account and take 3.5 million loss. The colleague said to me, "you make it slow, and you lose it fast." Those words sent shivers down my spine as I watched my own margin calls pounce upon me and demands from my brokerage to put up or sell out. I was out of capital. I told them that the VIX never gets to 48 and the last time it was there, there was a reversal of massive proportions by the next day. I have sold naked the VIX 25 August Calls @ 1.20 and they had gone against me to 12.10 and by the end of the day, today, they were still against me by only by about half of yesterday which meant I could get a half night of sleep tonight as oppose to yesterday when I was so bugged eye that I swore that should I ever get into the black that I would never ever trade again - I have made that promise to myself more than once and I always break it. With Bernanke's clear and concise statement of keeping interest rates low until the middle of 2013. One can only imagine what this means for companies - the goal of hitting 1400 seems like a very real possibility and by the end of the year. The VIX still has a chance to retrace back to normal levels as in under 25 or closer to 20 and 19. We shall see.
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