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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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…

Trading Index ETFs Through Moving Average Congestion

Identifying trading trends:  When Moving Average Collide…   One of the simplest ways to assess the trading trend (or lack thereof) in an ETF or index is to review the relative position of the moving averages. A quick glance at the small caps Russell 2000 ETF (NYSEARCA:IWM) shows a 5, 20…

VIX:VXV Volatility Ratio: Wait For Stocks To Go On Sale

As we’ve mentioned in previous articles, we watch the ratio between the 3 Month Volatility Index (INDEXCBOE:VXV) and the spot Volatility Index (INDEXCBOE:VIX). This gives us a sense of whether traders are more concerned about the near-term or the longer term and are willing to pay to protect stock market…

Gold Prices (GLD) Trading On Edge Of Risk On/Off

Despite the Fed meeting, surprise OPEC production cut and presidential election uncertainty over the past two weeks, the financial markets have been remarkably range bound. Last week saw long-term US Treasuries move higher along side stocks. While traders typically oscillate from “risk-on” to “risk-off” and move asset classes with them,…