Yo Pit Crazies,

It has been a while since we’ve seen a full contango curve and 3 weeks since the VIX has been in the 23 handle.

I traded there yesterday..

Yet Vol Man has questions …

What is it in the Edge Hunter Vol Dashboard that puzzles him?

You must click through to find out.

What Vol Man Sees Short-Term Doubt

9-day VIX (VIX9D) is volatility two weeks out, or nine trading days.

It is just a hair over the 30-day VIX, and it’s there because the CPI number is coming out this week.

This is the classic binary switch for VIX going into an event. The trend in VIX right now is down but could not quite close out of Zone 4 (24 and above).

With June VIX in contango for the first time in weeks, VIX puts – especially the 25s that I own –  are remarkably cheap (with VIX trading 24), relative to the potential moves that could happen over the next week.

The puts closed 1.30 yesterday and could easily double that with a drop in VIX post-CPI.  Treasury Sec. Janet Yellen put some minds at ease yesterday as she kept the party line on dampening inflation.

Let’s see if the traders take the vol down another tick prior to the CPI. That would get Vol Man excited.

The Rundown

Big Money Shopper

Big Money got off to a fast collab start with  American Airlines Corp (Ticker: AAL) puts and a 61% gain.

Prices have doubled on BMS … but call customer care today at 1-888-872-3301 to grab Founder’s pricing. Tell them I sent you!

Big Money Flow

I closed some Micron Technologies Corp (Ticker: MU) puts for a 14% gain today while Mark was in Cooperstown along with some American Airlines Corp (Ticker: AAL) puts for a  61% gain.

Pro Chat Room

Mike M making some shekels in a short gamma fly:

To Your Trading Success,

AG