A Play For Intraday Pops (And Long-Term Drops)
The Option Pit VIX Traffic Light Is Red: Volatility Will Drop. Hey Traders, The Option Pit VIX Traffic Light is back to red; however, the last few weeks have been quite volatile. The VIX even tapped over 25, and is STILL sitting over 18. Yet, for those trading long volatility, pain abounds. Let me explain […]
VIX Options Are On Sale!
The Option Pit VIX Traffic Light Is Red: Volatility Will Drop. Hey Traders, The VIX is now back below 20 … I think there is a good chance we will make a run at a new all-time high in the S&P 500 (Ticker: SPX). More importantly, there are really good ways to play volatility. Even […]
Back To Business As Usual?
The Option Pit VIX Traffic Light Is Red: Volatility Will Drop. Hey Traders, After a rocky first half of the week, things look like they may be getting back to “normal” today. Dovish statements out of the Federal Reserve are helping give markets a boost, and the S&P 500 (Ticker: SPX) has almost completely recovered […]
Buckle Up For This Yellow Light
The Option Pit VIX Light Is Yellow: Volatility Is Going To Move. Hey Traders, With the ending of the bloodletting yesterday, and the subsequent rally today, I know everyone feels lovely … But should you? While we are not in a ‘green light’ situation after yesterday, we are still really close … Today’s yellow light […]
How I’m Trading This Green Light Vol
The Option Pit VIX Light Is Green: Volatility Is Going To Go Up. Hey Traders, I have to admit it: I was wrong. I thought we would see a huge up day on Friday… It is the pattern we had seen in the stock market for the prior five expiration cycles. But this time, something […]
This VIX Indicator Signals Choppy Waters Ahead
The Option Pit VIX Light Is Green: Volatility Is Going To Go Up. Hey Traders, It is not a pretty day for markets … The S&P 500 (Ticker: SPX) is taking one on the chin … And unsurprisingly, the VIX is reacting in turn … popping to a four-month high, and tacking on nearly 37%, […]
The Strange Thing About A Normal VIX Curve
The VIX Traffic Light is Red: Volatility Is Likely to Drop. Hey Traders, As you can see, the Option Pit VIX Traffic Light is red … barely. We saw the VIX slip back into a contango (futures trading progressively higher over spot) on Thursday, with expectations that we could see a big up day on […]
Are We Past The Peak Of Fear?
The VIX Light is Yellow: Volatility Is Going To Move Wildly. Hey Traders, The S&P 500 (Ticker: SPX) had a strong day on Wednesday. On Thursday, it opened lower … But as we head into Triple Witching I am noticing a trend this week in the VIX. What does it mean? Where are we going […]
September Expired, Now What?
The Option Pit VIX Light Is Yellow: Volatility Is Going To Move. Hey Traders, VIX expiration was Wednesday morning. All considered, it came in light at 19.79. This despite a REALLY ugly day on Tuesday. So now that September is off the books, what is next? Wednesday was a strong day for markets, I’ll have […]
Have We Reached A Bottom?
The Option Pit VIX Light Is Yellow: Volatility Is Going To Move. Hey Traders, We are still at a yellow light … but barely. We are in a high-leverage couple of days for the market. Everyone is watching the Consumer Price Index, and on top of that… We have one […]