Put selling, what I have been doing, may not be a good idea with the VIX going low. From a Barrons article
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This trading veteran, a former market maker who now trades options for his own account, believes buy writing and its cousin, put selling, makes sense when investors have correctly called the top in the VIX.
"The worst time for the play is at the nadir of VIX. That's a double whammy against you as a rising VIX, or a about-to-be rising VIX, implies not only higher volatilities, which sucks in the buy writers/put sellers, but rising volatilities almost always are a precursor to falling stock prices," my market wizard says.
Bottom line: Buyers beware.
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Treasuries may be an interesting play via TLT or TBT or options. The cover story of Barrons was on the prospects of Treasuries considering the looming budget deficits. Folks know that when I see a magazine cover, I am much more likely to go the other way. Treasuries also tend to be seasonal strong during June-to-September.
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