This is the scariest chart of the year

BY ANDREW GIOVINAZZI

February 28, 2025

Yo Pit Crazies,

 

Well what is not scary is SPY Zones sent out some open/close areas that generated some great results for traders.  Check it out here.

 

Maybe just 30 days into the new Administration is a little early to call the best economy ever.  Right now traders are struggling to find footing with all of the conflicting news stories as stocks get 4% off of all time highs.

 

Just 4%.  That is not a lot.

 

7 green candles for VIX has not happened in 3 months or longer.  That is damn scary but perfectly normal for a market that is going down. Traders need good news.

VIX 3  month chart with 1 day candles

As nuts as 7 up days for VIX is, what is really nuts is that it is not the worst looking chart.

 

VIX Futures are totally backward to the cash

As nuts as that curve is, traders have not totally committed.  We are only in Zone 3 so this is a dust up, the water is hot but it is not boiling yet. I don’t know what makes the market crack up but all the Big Multiple Tech stocks are getting thrashed.

 

Right now this VIX says I am not sure if we are done.

Right now more weak data will keep pushing VIX and SPX around.  For the very near term I don’t see an end to it.  The Recession word is still perking up and the slightly higher inflation we got this morning is not helping.

 

Anyway, this curve says expect more of the same today.

 

To Your Trading Success,

 

AG

Andrew Giovinazzi

30-Year Trading Pro

pit profits

See what's hot at option pit

CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain

DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain

PFE May17 26 calls closed for a 66% win

OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain

OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain

Andrew Giovinazzi

Andrew Giovinazzi

Share This Article

About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

Popular Posts

Categories

Stay Updated

Subscribe to our newsletter for daily trading insights

Upcoming Events

FOMC Meeting

2:00 PM EST

Earnings Season Begins

Pre-market

Options Expiration

Market Close

NFP Report

8:30 AM EST