We’re Witnessing The Great Repricing
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, The S&P 500 was up on Thursday, its fourth straight day of gains. The SPX’s move higher – 57 points, or 1.3% – should represent a VIX of about 20.60. Theoretically, if things continue as is, the VIX is going […]
How To Trade A Potential VIX Collapse
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, The VIX closed about 26.80 on Wednesday after the FOMC minutes were released. The S&P 500 (Ticker: SPX) remained flattish through most of the day, and closed flattish. I think the VIX is due for a bounce. That said, […]
The VIX Is In No-Man’s Land – What Now?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, The S&P 500 (Ticker: SPX) had a huge turnaround on Tuesday. After being down as much as 75 points, the SPX closed the day up around six points! VIX did rally … but mostly from the effect of the […]
Watch This Vol Indicator For A Tradable Bottom
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move. Hey Traders, I hope you all had a restful holiday weekend … Because markets sure didn’t hesitate to get back to business on Tuesday morning. Right now, the Option Pit VIX Traffic Light is yellow, telling us volatility is ready to make […]
Check Out These Big Money VIX Moves
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, The VIX flirted with 30 yesterday … But that wasn’t what caught my eye. On Thursday, there were a few massive VIX trades that crossed the tape … First, there was a massive roll out, with one trader selling […]
Is The VIX Too Low?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, The S&P 500 (Ticker: SPX) was up over 40 points on Tuesday’s open … It ended the day down almost 80! That is a huge range for SPX … Meanwhile, the VIX closed up 1.41 points at 28.36. Seems […]
Trade Cheap VIX Vol With These
The Option Pit VIX Traffic Light Is Yellow: Volatility Is Likely To Swing Wildly. Hey Traders, The VIX futures curve is back in contango (futures trading higher than cash VIX): Or at least … it is through the November future. While the contango is not steep, headed into the 4th of July weekend, even if […]
How To Take Advantage Of Cheap VIX Options
The Option Pit VIX Traffic Light Is Yellow: Volatility Is Likely To Swing Wildly. Hey Traders, The VIX is trading around 27.50. Still historically high … but much cheaper than where it was trading last week. The S&P 500 (Ticker: SPX) is back above 3,900 and climbing. And with the Option Pit VIX Traffic Light […]
This VIX Signal Is Not A Good Sign…
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, The S&P 500 (Ticker: SPX) ended Thursday up 35 points, nearly touching 3,800. But the VIX actually closed up on the day! This is usually not a good sign. Considering the S&P 500 rallied, that means vol was up […]
This Trade Probably Won’t Work (But I Love It)
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up. Hey Traders, On Wednesday, the S&P 500 (Ticker: SPX) closed down four points … An ‘inside’ day would be what many traders would call it. What caught my eye though was an interesting trade … One unlikely to work … But […]