BY MARK SEBASTIAN
November 21, 2023
Hey Traders,
The VIX got smoked on Monday closing at 13.41 down from Friday…meaning that vol was in pretty significantly..
And there is room for the VIX to drop.
The Curve is still pricing in the ability for the VIX to drop into the 12s.
With the curve priced the way it is, there is only one conclusion to make…the futures think the VIX is going lower.
OR…NVDA is going to throw a big wrench in the markets gears.
NVDA reports on Tuesday after the market close…
Heading into earnings here is how things are priced…
As has been the trend, the market is looking for a smaller than normal move.
IF the market is right, the S&P 500 is going to run to 4600…
If they are wrong we are heading to 4700 or back to 4400…
This is a BIG earnings announcement.
So how do you play this?
Wednesday is key…markets will be illiquid, meaning the trend will be your friend…
With the VIX this low I might look at a pre earnings strangle in SPX…but the easier play is to wait for earnings and jump in the direction of the market…
It is likely to be up by 10 AM ET.
Your Only Option,
Mark Sebastian
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Mark Sebastian
Founder & CEO, Option Pit
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