Volatility correlation
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The S&P 500 blew higher on Wednesday rallying a whopping 1.97% or 71.75 points. The VIX dropped 2.42 points to 30.18. What we are seeing is the beginning of a short squeeze that could last a day or two … But […]
Huge Implications for the market
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. My VIX light is green and got greener on Tuesday… This despite the S&P 500 only being down 7.75 points. Why? VIX correlation. Relative to the S&P 500, the VIX is outperforming for the first time in what seems like two […]
More Opportunities
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high. The VIX was up a lot relative to the S&P 500 on Monday With SPX dropping slightly more than 1%, VIX rose 2.34 points to 32.26, now pricing in daily movement of more than 2%. The VIX curve is now firmly […]
VIX Creating Movement
The Option Pit VIX Traffic Light Is Green: Volatility is likely to stay high My VIX light is now green. Here is why: For starters the VIX curve is now in backwardation: For the light to go green I need to see not only the VIX over the future curve, but I need to see […]
Conflicting VIX Views
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly The VIX closed down .64 points on Thursday… This is despite a pretty nice drop in the S&P 500 in the final 10 minutes of the day. But here is the crazy thing … Despite the SPX dropping like a stone […]
More Opportunities
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly The VIX closed on Wednesday, post-FOMC, up about .83 points to 27.99… But I think VIX is going to go up How do I know? Check out the VIX curve at the close: The curve itself is now backward out 3 […]
FOMC Today!
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly The September VIX options expire this morning. The settlement will probably land somewhere between 26.50 and 28. This will make October the front-month future. Let’s take a look at the close curve from Tuesday: The September future closed below the cash […]
VIX Switching Up
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly On Monday the VIX dropped .54 points … Considering we were coming off a weekend, that is not an insignificant drop. With the nice rally on Friday, I would have expected at least some volatility faders to step in and play […]
Two Big Events: What Will VIX Do?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly Friday’s price action was wild for SPX. It started the day under huge duress … only to turn around at the end of the day. Now as we head into a new week we have two big events. There’s the FOMC […]
Head-scratchers
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly Heading into today’s quadruple witching, the market had a nice late-day sell-off on Thursday. The S&P 500 at one point was down 1.5% and closed right on top of 3900. The next stop might be 3750. But VIX … seems like […]