$VIX: Yep

We've been watching the VIX for months now and our patience has been paying off. Last call we talked about the extremely low levels and cited that their days we likely numbered, especially with the reality of $4.00 gas.

Now that the VIX is getting close to 25 we may look for some capitulation in the markets to spike a bit higher, or a bounce in the markets that would send the VIX a bit lower for a while.

If you were buying Calendars in a low VIX environment, your positions are being rewarded this week with long Vega.

$VIX Daily Chart: