September Expired, Now What?

Mark Sebastian

The Option Pit VIX Light Is Yellow: Volatility Is Going To Move.

Hey Traders,

VIX expiration was Wednesday morning.

All considered, it came in light at 19.79.

This despite a REALLY ugly day on Tuesday.

So now that September is off the books, what is next?

Wednesday was a strong day for markets, I’ll have more on that tomorrow.

Today, the VIX futures settled at 19.79 … essentially the worst settlement for everyone involved in the product.

Almost all the open interest went out worthless.

The 15-strike, 16-strike, 17-strike, 18-strike, and 19-strike puts … all worthless.

The 20-strike calls … also worth nothing.

So what now?

Well, I have told you about the pattern we have been seeing in markets on expiration:

We are now at the point where the market is either going to rip higher, or we are truly going to break …

Wednesday’s price action says we are going to go higher.

Today, in my Volatility Edge program, I put out a trade buying VIX Oct puts …

I will also be putting out trades on ProShares Ultra VIX Short Term Futures ETF (Ticker: UVXY) in the coming days.

Your Only Option,

Mark Sebastian

VIX Edge

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.

Share This Article