A Post-Pandemic First For The VIX

The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop.


Hey Traders, 


On Thursday the VIX closed at a new post-pandemic low!


Volatility got smoked on Thursday, shooting VIX to its lowest close since the beginning of COVID …


Recently I’ve been discussing a string of low VIX closes, and what it could mean for the markets going forward …


So the question is … will it continue?


I have the answer!


On Thursday the VIX closed at a new post-pandemic low of 16.10.



While VIX has technically dipped lower than this level since the beginning of the pandemic, it hasn’t closed this low yet …


We have seen the index hit new recent lows in the last three months …


Each time it led to some ugliness … short lived, yes, but ugly …


So, now the question is … are we heading lower or higher?


I have been saying for months the VIX will be at 15 or lower by July …


I’ll admit, I am wrong sometimes …


But this time?


I think I am right.


Big traders were buying puts AGAIN in July …


Check out the ballooning open interest and big volume in July puts:



Open interest on the July 17-strike puts is now over 250,000, with another 29,000 trading today!


The 16s have over 218,000 open!


Big money is looking for the VIX to fall.


The 15 puts cost $0.25, and there is open interest of nearly 100,000 …


I think we will get there.


I would be a buyer of the July 16-strike or 15-strike puts …


In addition, ProShares Ultra VIX Short Term Futures ETF (Ticker: UVXY) puts are extremely appealing…


Just today I closed the UVXY 34-strike puts for a huge profit for Volatility Edge …


A 75% win in the UVXY June 11 33-strike puts for Robinhood Trader


And June 17-strike puts for Volatility Edge …


Each trade won big.


And I think if played right there is more to come …


Your Only Option,

Mark Sebastian

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