The CBOE Volatility Index, widely considered the best gauge of fear in the market jumped 12 percent to 29.15 on Monday, its highest level since early July, suggesting traders expect more volatility. Brian Stutland, president and trader at Stutland Equities shared his market insights with investors.
“VIX future traders were predicting this kind of rise in volatility come this fall,” Stutland told CNBC. “They were bidding up VIX futures all the way up to 30.”
Stutland said he now expects markets to drift sideways between 980 and 1,020 on the S&P 500 for the next couple of weeks.
“If you’re looking to put money to work, it may not be the best time especially coming into the fall season,” he said.
However, it’s not too late to buy premiums for technology and materials, said Stutland.
“Intel , Google ,Apple—those had nice run ups. It’s not too late to go out and take a look at November and December premiums, buy some puts,” he said. “You can gain some protection at less than 3 percent of the value of some of these stocks. It’s not too late to do that – it’s a good way to protect some of your gains.”
No immediate information was available for Stutland or his firm.