Yesterday on CNBC, Brian talked about the possibility of fear creeping back in to the market. After 7 straight days of gains, the market struggled to make it in to the green. Brian feels there might be a little bit of worry because the VIX futures are trading significantly higher which leads us to believe people think volatility will rise. Although there is fear, Brian notes that much of it is to the upside right now because there has been a huge move off the bottom. He recommends taking a look at the VIX to give a gauge of where the market is going. Brian's example on how to play it is Southwest Airlines. Here he wants to define his risk and buy a slightly in-the-money call. His only risk here is at much as he paid for the call and you can still participate in the upside.
Fear back in the picture?
Fear back in the picture?
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