A Roundabout Way To Play Bond Vol
The Option Pit VIX Traffic Light Is Red: Volatility Is Likely To Drop. Hey Traders, The release of yesterday’s Fed minutes sent the market into a spiral … And the VIX surging higher. But the VIX and broad market indexes aren’t the only thing getting hit by the increasing Fed hawkishness … iShares 20 Year […]
Year of the Dow?
The Option Pit VIX Traffic Light is Red: Volatility is likely to drop. Hey Traders, On Tuesday, we saw a pretty strange market. While the Nasdaq (Ticker: NDX) was down 2%, the Dow Jones Industrial Average (Ticker: DJX) was actually up over 200 points. That is a strange occurrence. The selling in the Nasdaq is […]
This Is The Key To a Sub-15 VIX
The Option Pit VIX Traffic Light is Red: Volatility is likely to drop. Hey Traders, The VIX is at a new low since Thanksgiving. Can it continue? On a day where option flow was anemic and VVIX (VIX of VIX) fell a touch, I am watching this index closely. It holds the key to a […]
Can VIX Break 15?
The Option Pit VIX Traffic Light Is Red: Volatility Is Likely to Drop. Hey Traders, Now that the VIX is finally under 20, it seems to be stuck hanging out around the 17 handle. But for how long? With the market going up … surely it is time for the VIX to continue its journey […]
A Cheap, In-The-Money Vol Trade
The Option Pit VIX Traffic Light is Red: Volatility Is Likely to Drop. Hey Traders, The VIX closed below 17 for the first time since November 16th. The VIX puts for January I have been imploring my readers to buy are up north of 100%. Now we head into the last two trading days of […]
Did This Just Signal A Volatility Drop?
The Option Pit VIX Traffic Light is Red: Volatility Is Likely to Drop. Hey Traders, Yes, I moved the light to red. It’s not because I don’t think there cannot be a crazy move … there totally could be this week. But with VIX falling and the S&P 500 (Ticker: SPX) falling on Tuesday, it’s […]
Is This Indicator Signalling A Rough Start To 2022?
The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, The VIX light is still yellow (despite my belief the VIX is going to drop) … We can expect some more wild moves in the VIX ahead. The S&P 500 (Ticker: SPX) boomed higher on Monday, rallying over […]
More Wild Vol Moves For A Quiet Week?
The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, Thursday’s trading saw the VIX break below 18 yet again. The VIX had another week with a huge range topping out at 27.39 and hitting a low of 17.62. In the end it settled at 17.96. The VIX […]
How To Prepare For More Wild VIX Moves
The Option Pit VIX Traffic Light Is Yellow: Volatility Will Make Wild Moves … Hey Traders, Remember that a yellow light's “wild moves” can be up and down. In the case of Wednesday, the wild move the VIX made was down … But what a move! Not only did the VIX get smoked, but VIX […]
How To Trade A Potential Santa Claus Rally
The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, If the market had an opportunity to dump, it was when President Biden was speaking. It didn’t. Instead we watch the S&P 500 (Ticker: SPX) close at the highs, and the VIX fall near session lows. So is […]