Great interview with Appaloosa Management's David Tepper on CNBC this am. Mr Tepper, whose fund has netted investors 30% annual compounded returns and grossed the firm 40% yearly spoke of call and put volatility levels as triggers for BUY and SELL within his fund.
This chart of the CBOE's VIX shows what he did as volatilities surged (He Bought) and as volatilities sank due to overconfidence (He Sold). This isn't Monday morning quarterbacking folks, he isn't just cherry picking and talking the talk, he walks the walk. Performance numbers don't lie, and this also points to why we at OptionMonster are so aggressive at highs and lows of volatility:
