Are The Late-Day Market Moves Bumping VIX?

Mark Sebastian

The Option Pit VIX Traffic Light is Yellow: Volatility Is Likely To Move Wildly.

Hey Traders,

On Friday, the pattern of market reversals during the final 30 minutes of trading once again repeated itself …

And during Monday, we saw this happen yet again …

But what is interesting is what is going on in the VIX on days when the market continues to buck expectations …

Even with the market finishing down, VIX is also down.

What does this mean?

Should our Option Pit Traffic Light be switched to red?

Not quite …

But it does tell us that even though the market is still hitting a few small bumps here and there…

The overall trend is that of volatility relaxing, and even a little bit of turbulence here and there hasn’t been enough to break the trend …

So if this continues … we could see a sub-20 VIX sooner than later.

Your Only Option,

Mark Sebastian

VIX Edge

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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