Stocks shot higher on Friday after the nonfarm payrolls report came in a bit stronger than expected. It was really sort of a Goldilocks number — not so strong that it would lead the Federal Reserve to start pulling back on monetary stimulus immediately, but not so weak that it looked like the economy was stalling.
It was “juuuust riiiight” — sufficient to keep both sides of the QE3 tapering debate fulfilled until the next batch of data. However, if you were paying attention to the “fear index,” also known as the S&P 500 Volatility Index (VIX), you would have seen a big drop on Friday as investors breathed a sigh of relief.
The proprietary system I use in my CounterPoint Options service is recommending that you open VIX June $14 puts (expiring June 18) under 25 cents.
Since the last ask price was right around that level at Friday’s close, this is one you’ll want to snap up quickly on Monday morning.
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