Cashing $174 on Otis Worldwide

VIX has come down, time to turn more cautious

Today, we’ll be closing our position in Otis, likely pocketing a net profit of $177 in 21 calendar days. Our P&L has been a lot less volatile compared to owning stock.

The VIX is now below 15%, which means that existing option premium sold two weeks ago is likely at a nice profit. We know that being contrarian on implied volatility is a prudent way to both preserve returns and maintain high flexibility in case fear returns.

Let’s take a closer look.