The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, Over the last week, we’ve seen some pretty big moves out of the SPX. One Friday the index rallied 53 points – a near 1.5% move. Interestingly, with the SPX rallying in big fashion, traders have come for VIX:…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Wednesday, the FOMC minutes came out, and the market did not like the news. Any chance that the day was going to end positive was put to rest … or so it seemed. But then 2:05 p.m. ET,…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, As the week begins, the market is NOT focused on the FOMC for once. Instead we are focused on the US Government – the debt ceiling debate. Yet for all the headlines, the SPX doesn’t seem to be concerned.…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, As I stated at the beginning of the week, volatility is way too cheap. Traders are not pricing in the moves we’re getting in SPX. The SPX straddle for Friday was about 55 dollars on Monday – we have…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Tuesday, the S&P 500 held a really tight range … until it didn’t. That was an ugly close: The S&P 500 closed near the lows for the day, despite the NDX being up. Even so, the NDX ended…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, The VIX rallied ever so slightly on Monday, mostly on the back of weekend effect as Monday was an inside day for the market. The S&P 500 only had a 26 point range. What caught my eye coming off…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, The S&P 500 had a weak day turn “meh” on Friday. The index tried to break 4100 on multiple occasions, but then just like all the weak volume days, the “buy the dip” crowd came in. It’s happened again…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Despite troubles at PACW the S&P 500 closed only down 7 points. How? The answer is the QQQ, the QQQ closed the day up .33%. But look underneath the hood and things are not so shiny. This…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Wednesday I wrote that the S&P 500 straddle was too cheap, and the VIX was too low for CPI… Check out the range of the S&P 500: The range for the S&P was almost 2X the previous day’s…
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.On Tuesday, the S&P 500 took a bit of a dip, falling .46% or 18.95 points to 4,119.17. The VIX got a bid moving up to 17.71Today, we’ll get the latest CPI number. Let me tell you, something has changed month-over-month.I have…