Winds of Winter
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 blew higher on Wednesday, running up 56.82 points. The VIX was smoked. It fell 1.41 points to 20.07 and even briefly dipped below 20. So what does a trader do? It’s this simple … option premiums are oversold […]
Falling Like Snow
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 sold off on Monday, dropping as much as 50 points at one time. The NDX and RUT had it even worse falling 1.42 and 1.27 percent respectively… Yet the VIX…fell.. While it closed off its lows of down […]
SPX And VIX Do The Tango
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 sold off 24 points on Wednesday, but that doesn’t tell the whole story. The index had over an 80 point range, going from up 30, to down over 50, to closing down 24 points. That type of movement […]
RIP To The VIX
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 gained 29 points on Tuesday, after being up 100 at one time. Yet 4,100 proved to be a hard line in the sand ahead of the FOMC meeting. So the momentum play failed on Tuesday – for the […]
Locked and Loaded for CPI
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 caught a huge rally at the end of the day on Monday. This was on a call from JP Morgan that we could rally 10% in one day if the number comes in light. I do not think […]
All Eyes On PPI
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly The S&P 500 rallied just under 30 points on Thursday with the VIX dropping .39… The VIX drop was less than the rally on Wednesday in which the S&P 500 only dropped 7 points… Why is the VIX so high? Short […]
Something’s Coming
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly On a day the S&P 500 moved .2%, the VIX was up .51 points… That is not supposed to happen. Volatility has caught a bid: You can see volatility continued to climb strongly. So what is going on? The answer…REITs and […]
All According To Plan
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly Hey Traders, Tuesday was another bad day for the market bulls. The S&P 500 dropped 57.58 points, off the lows of down nearly 80, but still down. VIX rallied again to 22.17 a 1.42 point increase. The VIX futures…did exactly what I […]
Best Of Both Worlds
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly Hey Traders, On Monday the S&P 500 took it on the chin dropping 1.79% to 3998.84, breaking back below the 200 Day Moving Average. The VIX for its part had a decent rally of 1.69 points to 20.75. But the truth […]
Something special in VIX
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move Wildly Hey Traders, The VIX fell below 20 for the 1st time since August. With the S&P 500 only down 3 points after the HUGE runup on Wednesday, and staying above 200 DMA, this makes some sense. They say history doesn’t repeat […]