VIX Rising Since December — I Just Put On a 1-1-1 Trade on /MES

Macro / Market Context & Levels

• Upcoming catalyst: Nvidia earnings (Wednesday, after the close)
  • Author notes NVDA is a large component of the S&P 500, so it may influence markets “for the week and probably a little while.”

Market weakness (reported)

• E-mini S&P (likely /ES): down ~75 points (about -1.27%)
• NASDAQ: down ~316 points (about -1.27% mentioned)

Resistance / trend framing

• Mentions a resistance area around 7013 / 7013 that price can’t get up to, describing a slow grind lower after failed attempts.

Intraday pattern claim

• Observes a setup on the E-mini where:
  • The market makes a lower low
  • But also a higher low (after an early “low AD of the day”)
• He explicitly says: “Wish I knew how to use that.”

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Volatility / Risk Regime

• VIX level: VIX at 21
  • Described as “good for us premium sellers”
• VIX move today: up ~11.9%
  • Captions contain some inconsistent wording (e.g., “to +2.27% is also mentioned”).

Fear/volatility trend

• Volatility has been rising gradually and linearly from December, suggesting slow, methodical fear creeping in rather than a sharp spike-and-fade.

Forward expectation

• He wonders whether VIX will keep rising or subside back to ~16–17.

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Trade Setup & Options Framework

Positions / structures mentioned

• The portfolio uses a VIX / premium-selling approach plus put debit spreads.
• He also uses “naked put” language (though exact legs are described as separate orders).

“1-1-1 trade on /MES”

• He references building a “1-1-1 trade on /MES”.
• The executed structure appears (from the description) to be a put debit spread on /MES / E-mini options.

Execution steps (as described)

1. Select horizon: uses about ~120 days for one put debit spread setup.
2. Target pricing: aims to structure the debit spread around “$10” (first can’t fit), then adjusts toward ~$9.70 and later ~$10-ish.
3. Place / adjust orders using existing strikes/legs:
   • “We’ll buy where we’ve already bought… We’ll sell where we already sold”
   • He describes replacing the order and adjusting strike/price until it fills.
4. Add additional put exposure around ~60 days:
   • Mentions an order around ~60 days
   • Attempts to sell a put for roughly ~$20, then pushes for more
   • Targets ~$22.75 for the short put
5. Risk/return targets (explicitly stated):
   • Notes a theta target after fills
   • Mentions using 0.1% of net liq:
     • “Onetenth of 1% of our net liq… multiply by 0.001… That’ll get you 67.”
   • After the new trade: theta increases from 62 to 67, which he says is “right where we want to be.”

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Key Numbers & Trade Metrics

Options / Greeks snapshot (current strategy/position)

• Delta: ~23
• Delta neutral: explicitly stated: “We’re delta neutral”
  • (Delta number may refer to a leg/metric; captions are inconsistent.)
• Theta: ~62 before the new fill; then 67 after
• Vega: negative ~60
• Buying power usage: ~27%
• VIX contribution: He indicates conditions match expectations where increased volatility helps their setup (premium-selling / negative vega orientation implied).

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P&L / account behavior (portfolio-linked)

• Account up on the day despite the market being down.
• Gains attributed primarily to rare earth-related holdings, including:
  • Remix: up ~1.57%
    • He says they own substantially more of Remix than other items (mentions an internal allocation / buying-power style number, including “3007”).
  • Uu Energy Fuels (UU): down ~5%, later down ~5.43%
  • MP: down slightly; later described as “down $5 on MP” and “nothing burger.”

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Specific order sizes / prices (as mentioned)

• Equity buy example:
  • “Let’s just snag a share…”
  • Buys 5 shares of UU
  • Attempts limit around ~20.19
• Put debit spread fill:
  • Mentions:
    • Cost: references $950 earlier as an attempted cost (then later “got us in”)
    • Buying power used: $715
    • Inflow / credit mentioned: $11,248 (wording unclear on whether it’s credit for another structure or a net figure)
• Short put / “naked put” attempt:
  • Targets about ~53 for a put around 60 days
  • Attempts about ~$22.75 credit for the short put
  • Order initially doesn’t fill (“Nothing.”), then later indicates it filled (“we are in baby”).

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Assets / Instruments Mentioned

Index / derivatives

• /MES (E-mini S&P 500 futures options context; also references “E-mini S&P” / /ES)
• S&P 500
• NASDAQ

Volatility

• VIX

Equities / single names

• Nvidia (NVDA) (earnings catalyst)
• Uu Energy Fuels (UU)
• Remix (ticker not specified in the subtitles)
• MP (company name not provided)

Options strategies

• Put debit spreads
• Put selling / short put (described as “naked put” in narration)

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Recommendations / Cautions (Explicit)

• Directional positioning: He is positioning for continued downside in /MES, concluding:
  • “this goes a little bit farther down”
• Trading style: Prefers trading during a “wonderful day down” and uses VIX to inform options structure.
• Uncertainty acknowledged:
  • Repeatedly states he doesn’t know what the intraday pattern means and is not sure about VIX direction.
• Disclosures: No explicit “not financial advice” disclaimer appears in the provided subtitles.

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Presenters / Sources Mentioned

• Presenter(s) in video: Subtitles identify Dwayne, and also mention Skip and Brandy.
• Earnings referenced: Nvidia (NVDA).