Don’t look now but VIX options might be getting…cheap!

That’s right I said it…

The VVIX (the VIX of VIX options)  closed at just above 103.  This thing is what measures what we call “vol of vol.”

A double mouthful I know but really this is just how much what we measure volatility with, ie the VIX, is itself moving around.

Normally a price of 103 would be high, but in the current environment, it is low.

In fact:

VVIX is the lowest price it has been since the Feb melt down began.

Is this a sign that the VIX might be heading lower?  

It is certainly a sign that the market is expecting less movement.

However, I would point out that when VVIX has gotten close to 100 in the last 6 months…VIX options have been gobbled up.

The point is, if one is looking to put on a play in this weird VIX environment, now might be the time to put on long VIX options.

The VIX light is Yellow:  Could go up or down, but is going to move.

Your Only Option

Mark Sebastian

P.S. – In my elite “Pro” membership, I show traders exactly how to trade vol of vol.  I give the exact plan from my training videos, to personal mentorship, to actionable money making trades in our trade room.  Call me at 1-800-Trade01.