The real Mr. October may not be Reggie Jackson. For the past five years now, the VIX currently at 26.84, has spiked 50% from its lows during the month of October. This past Friday, volatility as expected “popped” as weak economic data surfaced. On “The Halftime Report” I had a chance to explain this phenomenon in more detail.
I also had an opportunity to discuss buying protection against a market correction. Playing volatility will give an investor this kind of protection. During my interview with Melissa Lee on “Options Action”, you will hear how to exactly to play VIX options. Another example of buying protection that I go on to discuss is buying a zero cost collar against a long position of a stock. These are just a few strategies to think about to prepare for a possible pull back in the market.