Is This A Buyable Bottom?
The Option Pit VIX Traffic Light Is Yellow: Volatility is to move wildly. Hey Traders, The VIX closed down on the day on Wednesday… This is the fifth down day for the VIX in as many days (adjusted for the long weekend, of course). At the same time, the VVIX (VIX of VIX) is tanking; […]
Bull Trap Or Time To Buy?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly. Hey Traders, The S&P 500 (Ticker: SPX) blew higher on Friday, rallying over 100 points into the close. With that, we saw the VIX slip further into contango (futures trading over spot VIX): VIX is now in a pretty decent contango […]
These VIX Options Are Incredibly Cheap Right Now
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to swing wildly. Hey Traders, The VIX has now held below the 30-handle for several days in a row for the first time since April. The VIX of VIX, VVIX, is now trading at its lowest levels since the pandemic. The Option Pit VIX […]
These VIX Trades Should Raise Some Eyebrows
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, On Wednesday, the VIX dropped following the release of the Federal Open Market Committee (FOMC) meeting minutes. If we get another day like Wednesday, we will likely see the Option Pit VIX Traffic Light flip to […]
An Unconventional Vol Trade Opportunity
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, Markets are up, VIX is down … But more than the VIX, there is another vol measure I am watching today. It may not be what you think of when you hear “volatility trade,” but there […]
Is Now A Good Time To Trade VIX?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, Markets are confused … And the VIX might be, too. Or at least one of the Option Pit VIX Traffic Light indicators. So does this mean “back away” from the VIX pits? Or is now actually […]
Is The Selling Pain Over?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, The VIX futures curve has flattened significantly over the last couple of days. On Friday, the S&P 500 (Ticker: SPX) had a nasty bounce back above 3900, and could head to 4000. So does this mean […]
The SPX “Line In The Sand” To Watch
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, 2022 has been a wild ride to say the least. And yet the VIX is … soft? What gives? We are approaching a critical level that could be make or break for market vol … What […]
The VIX Trade I Would Make Right Now
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, The S&P 500 (Ticker: SPX) closed at a one-year low, and firmly below 4000 on Wednesday: But … the VIX was actually down. Why? Part of the reason is the price of VIX. A 33 VIX […]
Is A VIX Breakout In The Works?
The Option Pit VIX Traffic Light Is Green: Volatility is likely to go up or stay high. Hey Traders, The markets took it on the chin again during Wednesday’s trading session … The S&P 500 (Ticker: SPX) closed down 1.65% … And yet the VIX finished … lower?! What gives? Are we nearing a vol […]