BY MARK SEBASTIAN
January 25th, 2024
Hey Traders,
Wednesday looked like an inside day…the S&P 500 closed up 3.95 points…
But in reality:
Wednesday was EXTREMELY ugly.
On the heels of a chip blow out and NFLX earnings the S&P 500 tried to blow the doors off…only to end unchanged on the day….
But it’s not like we couldn’t see this coming.
Let me stress for active traders the importance of running VIX futures and S&P 500 futures on top of each other because the story is telling.
All day…as the S&P 500 was breaking new all time highs…the VIX futures just went up…and up…and up.
Now take a look at the S&P 500 and the VIX on a day chart:
All day…as the S&P 500 was breaking new all time highs…the VIX futures just went up…and up…and up.
Now take a look at the S&P 500 and the VIX on a day chart:
Since the VIX bottomed out at 11.82 on 12/12 and the S&P 500 closed 4640, the S&P 500 is up more than 200 points…
The VIX is up 1.2 points.
WIth January now rolled off…positioning says that we are vulnerable.
The good news…near dated options are WAY too cheap…
The FOMC meeting is January 31st.
The February 4870/4880 strangle:
Less than 60 dollars…this is WAY too cheap. I am a buyer.
Want to trade this strangle with me? Join the trading desk. Andrew Giovinazzi and I are trading together EVERY DAY in the room trading
Straddles
Strangles
Index Butterflies
0 DTE
You name it.
Call my team 888 872 3301, mention you read this post and they will have a special price for you.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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