Fear gauge ticks up, VIX stays hot: sell calls, add selectively

Fear is elevated but no longer worsening, which is exactly when patient buyers build positions. The VIX, Wall Street's fear gauge, sits at 25.6 — well above its one-year average of 18.1 — making option premium expensive, so selling covered calls on existing holdings generates income rather than buying protection. RSI, a momentum gauge, reads 35.1, just above oversold territory, suggesting the worst of the selling pressure may be easing.