Summary of "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.”

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.

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)

Select horizon: uses about ~120 days for one put debit spread setup.
Target pricing: aims to structure the debit spread around “$10” (first can’t fit), then adjusts toward ~$9.70 and later ~$10-ish.
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.
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
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.”

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).

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.”

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”).

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)

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.

Presenters / Sources Mentioned

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

Category

Finance

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