Quite a Friday the 13th we had…. we got our $VIX warning signal, and it looked like it could be a repeat of Aug 20-24… however, a significantly more minor one; $SPX was only down 1.12% for the day. Then the Paris attacks instilled fear, but because they happened Friday, with the weekend to digest, it was anyone’s guess what Monday would look like.

For now, we STILL have an active warning from Friday, so be on the lookout. VIX would need to fall at least back below Wednesday’s close of 16.05 before I would say we can ease off the brakes. SPX vol is high so selling new spreads will get you fairly far OTM; just proceed cautiously. Call spreads should be above all-time high of 2135. I will look to sell my normal 5-week out spreads for Dec 17th before I consider putting rolls on from spreads that were stopped last week.