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

Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

Mark Sebastian

Mark Sebastian

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.

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