How The VIX Could React To Holidays, Omicron, the Fed …

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, For a second there on Monday,  it looked like the wheels would fall off … But then something happened … Treasuries began to sell off … VIX began to sell off … The Russell 2000 (Ticker: RUT) began […]

How To Play This Omicron VIX

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, Despite the big market drop on Monday, and the pop in VIX, the Option Pit VIX Traffic Light light is still yellow. Could the VIX touch 30? It sure could … Could it drop back below 20? It […]

Wednesday’s Bloodbath Might Only Be The Beginning

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, Wednesday’s post FOMC move was a total VIX bloodbath … For the longs. But is it a one day blip, or is VIX actually going to head lower? It might only be the beginning. Believe it or not, […]

Traders Are Nervous … Or Are They?

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, As we head into the FOMC meeting and press conference on Wednesday, there sure is a lot of fear in the market … Or is there? While VIX is over 20, some of the action traded Tuesday speaks […]

Up Or Down, Which Is It?!

Friday morning is quadruple witching. We typically expect some wild moves the week of expiration, especially with the Federal Open Market Committee (FOMC) meeting coming on Wednesday … But the truth is, we can get more information about what is going to happen from the VIX paired with the SPX than either index by itself. […]

What’s Next After Last Week’s Astounding VIX Move?

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, Last week we saw the VIX go from over 31 to under 19. That is just an astounding move! On Monday, the VIX seems to be recovering some of that drop as the S&P 500 is selling off […]

The VIX Is Getting Smoked … Here’s How To Trade It.

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, While the S&P 500 moved a modest 14 points on Wednesday, the VIX got completely smoked. The VIX closed at 19.96. At Monday’s open, it was over 30. That means it dropped 10 points in about two trading […]

Is The VIX Really Ready To Take A Break?

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Going To Make Wild Moves. Hey Traders, The VIX light is now yellow. Does that mean the craziness is over? Well, it means that the likelihood of the VIX going to 60 is a lot less than it was on Friday … But is the […]

How To Trade The ARKK Uncertainty

The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Go Up. Hey Traders, So Monday was nice. The Dow Jones Industrial Average (Ticker: DJI) ran up 650 points, the S&P 500 (Ticker: SPX) gained over 50, the Russell 2000 (Ticker: RUT) blew higher by 47 points for a cool 2.2% gain. The […]

Why Today’s Rally Doesn’t Mean We Are Out Of The Woods

The Option Pit VIX Traffic Light Is Green: Volatility Is Likely To Go Up. Hey Traders, The market is in full backwardation, with VIX futures trading progressively lower … Sometimes this represents a bottom for the market. But there are times where it can represent a serious weakness in the market. So the question is: […]