Merry Christmas and happy new year everyone !!
Hope you will all have a great trading experience in 2017. 

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Googled definition of small cap and this article popped out. I must admit $2b is not 'small' in ASX but still it's within the definition according to this article. I shall be more careful with my use of words :)

http://www.investopedia.com/terms/s/small-cap.asp

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Bellamy's share price got murdered on Friday - down by 50% in one day ! They produce milk products mainly for export to China. It's not a small cap either. Similar fate for companies who focus on China. Australian economy is not looking very bright.



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One of the funniest yet profound statements I ever heard was from the mouth of an optionetics speaker - 'Beware of the risk involved in options trading because you will eat like a bird and crap like an elephant' In hindsight it's so true..

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Last 2 weeks has been boring as a bat. VIX hovered around the $14 with no sign of direction.
This article has some interesting points around market dislocation :

http://www.cboeoptionshub.com/2016/11/30/discussion-market-dislocations-rmc-asia/

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Entered new trade - VIX December 13/12 put credit spread. I am betting vol will rise after the thanks giving long weekend.

http://realmoney.thestreet.com/articles/11/25/2016/hold-your-hats-volatility-primed-rise?puc=yahoo&cm_ven=YAHOO

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A good article on VIX. I wouldn't hold this position to expiry though. VIX is likely to finish up below $13.

http://us7.campaign-archive1.com/?u=de06bab2a232c0a0a515c821c&id=9bb6db686b&e=eab6534c52

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If anyone's interested in having a go at trading VIX options, here is a useful info. Black Friday this week means the US markets will be closed for 4 days, and if VIX gets to low 12 or even 11 by Thursday, then go long vol. it's very high probability trade.

http://www.cboeoptionshub.com/2016/11/19/weekend-review-vix-options-futures-1114-1118/

Entered a new trade today. Bought slightly OTM VIX put credit spread. My next trade will short volatility with OTM and ATM put options.

No one can be sure of what future holds but what's happening now in the markets has an eerie resemblence to Brexit. A huge spike in Volatility was followed by even bigger vol crush that saw the VIX end up in low 10's. I think that's what will happen in December.


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