Here’s Where VIX is Going

Below I lay out a key to my AMAZING performance in our elite trading service “Vol Edge.” We made HUGE GAINS during the election. To celebrate I’m reopening my special offer. Check it out and get in before I take it off again.

Hey traders,

We are heading to a sub 20 VIX.

As of today,  the VIX is now essentially in a full contango as can be seen below with the green dashed line below the blue line:

There is still some flatteness in the curve past January,  but I think that is a sign of a bit of fear around inauguration and the election.

The important point is that the VIX is trading below November futures.  November contracts are below December, and December is below January.

In addition, the spread between December and Cash is ACTUALLY kinda normal.

When I see this,  I see a market with a VIX that is going to decline with the curve following it down.

I think we could see a 18-19 VIX by Thanksgiving.

There is potential,  that if things calm down and we get more clarity in covid we could have a sub 15 VIX before December expiration.

This is the most bearish volatility the VIX has been in 9 months.

We will be discussing plays in VIX this week in both Volatility edge (which is KIILLING IT RIGHT NOW) and in the Trading Legion.

I might even throw VIX into a Sharp BETS trade. It is a trade I like so much right now.

The VIX light is RED meaning that we expect IV to drop in the next 30 days.

Your Only Option,

Mark Sebastian

P.S. – While Sharp B.E.T.S. is all about trading the “vol” of individual stocks with one awesome trade per week, sometimes we put in some unique trades using the ETN $VXX. That last one we did in October made 62%! Speaking of October, we are up over 330%. Check it out and join here

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Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

Mark Sebastian

Mark Sebastian

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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