Opening a Lowe's Position
Fairly valued cash-returning compounder
The VIX is spiking above 20% again, so time to put some excess cash to work. With today’s headline: “February consumer confidence comes in lighter than expected in latest sign of slowing economy.”
More implied volatility equals more opportunity to use options strategically. We love to and should be contrarian, as our research has learned us over the past years.
Becoming prudent when everyone’s bullish, and scaling positions when it’s appropriate. Such mechanical approach results in steady returns, as shown over the past few weeks.
Let’s take a look at a new position we’re going to put on.