The Market Rally May Be Long In The Tooth…
The Option Pit VIX Traffic Light Is Yellow: Expect Wild Moves in Volatility Hey Traders, After a rip-roaring week leading into quad witching, I was not sure what to expect on Monday. We got an inside day, with the S&P 500 never moving up or down 1%. At the top, the S&P 500 (Ticker: SPX) […]
How I Would Trade This Vol Action …
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, Well, the Option Pit VIX Traffic Light is still green … But only barely. We could see a switch to yellow any time now … Take a look at the VIX futures curve … While I would not say […]
What This Massive Vol Shift Means (and how to trade it)
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, The FOMC decision is out and the market – much to the surprise of many – seemed to like it. The VIX curve had a massive shift … The shift was so hard that my indicators are all starting […]
A Down Day For VIX, A Wild Ride For Vol
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, On Tuesday the VIX was down 1.94 points to 29.83 … ProShares VIX Short-Term Futures ETF (Ticker: VIXY) was down 3.29% to 21.47. ProShares Ultra VIX Short Term Futures ETF (Ticker: UVXY) was down 4.36% to 19.97 And then […]
Your Volatility Playbook For This Week
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, The S&P 500 (Ticker: SPX) closed down yet again on Monday. Heading into VIX expiration, there are a lot of questions that need to be answered. 1. What is the VIX going to look like post-settlement on Tuesday? […]
Will This Week Be Different? Not So Fast …
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, On Friday, the market looked pretty darn boring … Until the last half hour. The S&P 500 (Ticker: SPX) fell apart, and the VIX popped. So what is on tap for this week? […]
The VIX Is Down … But This Spells Trouble.
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, The S&P 500 (Ticker: SPX) closed down on Thursday … So did the VIX … Unlike other days, VIX got hit pretty good. As you know, one of the things I watch closely is VIX negative correlation to SPX. […]
The VIX Options I Like To Play This S&P Pattern
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, At a minimum, Wednesday was a phenomenal short squeeze. We saw the S&P 500 (Ticker: SPX) boom higher by 107 points to 4277 … But it is stuck in a pattern of trading. Check out this chart of the […]
Is This VIX Correlation Break A Sign Of The End?
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, On Tuesday the S&P 500 (Ticker: SPX) TRIED to break out higher … Only to fail. What looked like a serious bear market face-ripper … fizzled. The S&P 500 closed the day down about 30 bucks, and VIX was […]
It’s Time For Long Vol Plays
The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Stay Elevated. Hey Traders, The S&P 500 (Ticker: SPX) closed Monday at its lowest level since June 18, 2021. But this market is very different from the June 18th market … As you can see, in 2021 that level was a chance to […]