Breaking The Pattern & Breaking The VIX
Hey Traders, We got the market rally we have been watching for today … It looks like the six-month “expiration week drop” pattern in the S&P 500 (Ticker: SPX) may, in fact, be breaking … And of course, we got the vol drop I have been waiting for. Where do we go from here? I’ll […]
Is The VIX Heading Toward A Post-Pandemic Low?
The Option Pit VIX Traffic Light is Yellow: Volatility Is Going To Move. Hey Traders, The S&P 500 (Ticker: SPX) had a nice 50 point range on Monday. Enough to get the VIX to 20 … again … Yet, we are seeing — and have seen over the last few weeks — a HUGE shift […]
Are VIX Pits Signalling A Bullish Expiration Week?
The Option Pit VIX Traffic Light is Yellow: Volatility Is Going To Move. Hey Traders, Over the last six months, EVERY expiration week (standard expiration on the third Friday of the month) has been the softest week of each month for the market. In each of those weeks, the S&P 500 (Ticker: SPX) has reached […]
A Market Rally But Strong VIX?
The Option Pit VIX Traffic Light is Yellow: Volatility Is Going To Move. Hey Traders, The VIX has broken its streak! This morning saw the VIX gap lower below 20 … But with the S&P 500 rallying (Ticker: SPX), I would have actually expected to see the VIX drop off even harder than it has. […]
This VIX Needs To Make Its Move
The Option Pit VIX Traffic Light is Yellow: Volatility Is Going To Move. Hey Traders, We are now on our seventh day in a row of the VIX being over 20. The VIX needs to make a decision … It is time to break out, or give up this higher volatility? S&P 500 (Ticker: SPX) […]
Why This VIX Belongs To The Faders
The Option Pit VIX Traffic Light is Yellow: Volatility Is Going To Move. Hey Traders, Over the last week, the S&P 500 (Ticker: SPX) has seen its share of volatility. It’s down about 150 points since the 28th … Must be great to be long volatility … right? Right? Well … In the last five […]
2 Trades To Play The Backward VIX Curve
The Option Pit VIX Traffic Light is Yellow: Volatility Will Move Wildly. Hey Trader, The VIX futures curve is now partially backward, with cash trading higher than near-term futures. But the futures are not starting to enter full backwardation quite yet … So what’s a trader to do? Should we go long iPath Series B […]
Who Muted VIX?
While the headlines will read about the S&P 500 getting stomped on Thursday … Those who trade are paying much closer attention to the lack of any movement in the VIX. VIX managed to rally only 0.58 points on a day the SPX was down 50. In fact, as the SPX dropped […]
The Story Behind Light Vol Volume
VIX trading volumes were extremely light on Wednesday. On a day where the VIX is over 22, we should be seeing worried hedgers and/or traders playing to fade the volatility index. We saw neither. The VIX has picked up over the last week, spending four of the last seven trading days over 20: Yet, VIX […]
This VIX Is Giving Me Deja Vu!
The Option Pit VIX Traffic Light is Yellow: Volatility Will Move Wildly. Hey Traders, I don’t know about you, but I am starting to get deja vu … We saw Tuesday’s session open with the S&P 500 down, and the VIX up … Is anyone else getting flashbacks to last week, or is it just […]