The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.

The SPX had a day on Friday, rallying just under 87 points.

The VIX dropped nicely to 21.13.

It could be the beginning of a new regime for VIX …

Or it could be just another bottom around 20.

Regardless of what you think … there is a trade I’m zeroed in on …

Buying VIX options.

Why? Because the VVIX is incredibly cheap at 73.88.

Remember, the VVIX is the VIX for VIX options … so it measures the cost of VIX options.

This is the lowest it has been going back over eight years!

That’s even pre-Trump!

It is impossible to overstate how cheap options are on the VIX index.

You can do just about anything in the options right now and probably make money…

Buy calls, buy puts, or buy strangles or straddles.

They are all likely to work.

Your Only Option,

Mark Sebastian