A Real Opportunity in SPX Right Now
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. For several weeks I have been explaining why the S&P 500 could drop 2% and the VIX could be sluggish. The S&P 500 would drop 2%, but the VIX was already pricing that in. Something has changed, though. While not exactly […]
What changes are happening to VIX?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. As the market opened on Monday – and the S&P 500 boomed higher by over 100 points – the VIX dropped like a stone… Then, it stopped – and began to rally. Even as the S&P 500 stayed relatively strong, the […]
Is the VIX curve stuck?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. There is an old saying … the trend is your friend. This is because the S&P 500 tends to correlate to itself … When it was up one day, generally speaking it tends to be up again the next … When […]
It All Comes Down to This [VIX Edge]
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 dropped 23.55 yesterday. About right in the middle of the intraday range. The VIX, though, was perky, running to 33.63 up 1.18 points. Obviously the run higher is directly related to PPI and CPI, which are going to […]
Pattern in VIX behavior
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 had a rough day on Friday dropping 105 points. VIX was up again by .84 points … but it was not up as much as it was on Thursday when VIX was up 1.97 points even though the […]
Outside Forces [VIX Edge]
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The VIX started the day up by over a point only to end the day down by .52. The S&P 500 was down over 60, only to close down just 7.65 points. What changed as the day progressed to drive the […]
VIX: Not So Fast, My Friend!
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 closed on its highs on Tuesday at 3790.93. So does this mean all is well? The answer is no. Here’s why … Even as the S&P 500 was breaking to new highs, the VIX was well off the […]
Squeezed! [Volatility Edge]
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 rallied 92.81 points in what was a powerful short squeeze on Monday. The VIX dropped 1.52 points to 30.10. That’s big, considering weekend effect. But the landscape has not changed for the market as a whole. The VIX […]
Defeat the Market
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. On Friday, the S&P 500 seemed like it was going to end the day positive. VIX was soft all day and, at one point, the VIX cash actually fell below the front end of the futures curve. Then the end-of-day selling […]
How do you trade this market?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 dropped 78.57 points yesterday, closing at a new low this week… The VIX did NOT hit a new high, though. But that does not mean that we are starting to calm down. Let’s looks at the VIX curve: […]