Posts From Sal Cilella

Sal Cilella

As an accomplished private options trader, Sal founded BetterBeta Trading in 2012 to bring his systematic options trading models to retail traders. Focusing exclusively on ETF and index options, BetterBeta Trading’s newsletter services feature both premium selling as well as classical trend following. In addition to leading BetterBeta Trading, Sal’s articles on systematic trading have been featured on numerous online financial outlets, including Abnormal Returns, WSJ and the Whole Street.


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Gold Prices Pivot Higher As Strong Seasonal Period Approaches

Earlier this month, as Bitcoin mania was in full swing, we checked in on the other pure store of value:  GOLD. We discussed seasonal tendencies and potential timeframes for the next gold swing higher.  Considering that January is a strong month for Gold, it’s not surprising that a rally is…

Gold Seasonality Patterns Point To Next Bullish Turn

Since mounting an impressive rally in August, the Gold ETF (GLD) has continued to slide, shedding nearly 8%. It hasn’t been pretty for precious metals bulls. Much has been written about the technical weakness in the GLD charts across a variety of timeframes. The break of ascending trend lines in…

Trading Strategies: Intra-day VXX Spikes

With the equity markets in a steady melt up, multi-day implied volatility spikes have all but disappeared. Any dip in equities now lasts mere minutes before the dip buyers arrive and push prices into the green. While this price action won’t continue forever, it does prompt us to look at…

Trading The Russell 2000: Here’s A Timing Strategy

In our previous article, we looked at using the small cap Russell 2000 Volatility Index (INDEXCBOE:RVX) to better time long entries in the Russell 2000 Index (INDEXRUSSELL:RUT). The Takeaway:  Waiting for a 20 day or 50 day peak in the RVX proved to be a consistently favorable long entry on…

Using RVX Small Cap Volatility Index to Time Your RUT Entries

With the Russell 2000 index (INDEXRUSSELL:RUT) sitting at record highs, many traders are wondering how much longer it can continue to climb without a meaningful retracement. Aside from a 0.75% pullback in early September, the move has been straight up. While no trader wants to miss out on a strong…

Using The $VXST To $VIX Ratio For Shorting $VXX

Recap:In our first article we examined the ratio of the CBOE VXST Short-term Volatility Index (INDEXCBOE:VXST) to the CBOE VIX Volatility Index (INDEXCBOE:VIX) as a method to improve long entries in the S&P index.  In last week’s article, we shared some preliminary numbers, using peaks in the ratio to identify opportune…

Backtesting The VXST VIX Ratio For Trading The S&P 500

Last week, we took a dive into a key volatility ratio that traders can use for timing equity trades. Recap:  In last week’s article, we examined the ratio of the CBOE VXST Short-term Volatility Index (INDEXCBOE:VXST) to the CBOE VIX Volatility Index (INDEXCBOE:VIX). As you can see from the chart…

What The VXST:VIX Volatility Ratio Is Saying About Stocks Now

With the lack of a buyable stock market dip dominating the financial news (see: WSJ’s “Markets’ Steady Climb in 2017 Defies Historic Odds“), many traders are waiting for an opportunity to enter the market on the long side and participate in what is shaping up to be a low volatility…

Are Small Cap Stocks Due for a (Relative Strength) Rally?

With the Fed rate hike now in the rearview mirror, traders still appear unsettled by the relative calm in the equity markets, marked by compressed daily trading ranges and intraday reversals. Rather than attempt to predict the direction of the equity markets over the next several weeks, we’d prefer to…

Ways To Trade And Trade Off Of Market Volatility Indices

The financial press and related blogs are packed with tales of worry about the record low VIX Volatility Index (INDEXCBOE:VIX) levels. With the move below 10 last week, it prompted no less than five full length articles on the Wall Street Journal. Writers worried that we should “Fear the Stock…