A Reason To Be Nervous…Or Is It?

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Hey traders,

The market was marginally higher today,  yet the VIX rallied.

Normally,  if I see the VIX rallying with the market,  especially on a ‘Meh’ up day, I get a little nervous.

However,  there is something funky going on with the VIX options right now, that is making me think there MIGHT be something else going on…

Take a look at the option volume in VIX December options:

The two biggest trades of the day were in the VIX 19 and 20 puts,  customers buying them

This is the equivalent of buying calls in SPX.  

SPX also has a bunch of upside call buying.

Thus,  I think we COULD be heading for a blow off the top run in the coming days.

This could lead to some selling afterward,  but in the very near future,  I see a VIX sub 20 and the SPX making a run at 3700.


Your Only Option,

Mark Sebastian

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