How Low Can You Go?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, Friday was a huge day for the S&P 500. It rallied 75.03 points, up 1.85%. The VIX got smoked falling to 17.19, not far off the lows before First Republic Bank (Ticker: FRC) fell apart. If you look at […]
Warning Sign Flashing
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, While this is a vast generalization, there’s a pecking order to traders in the world of equities. At the top are the Variance and Credit traders. These are the traders trading complex structured products, debt, and OTC variance swaps. […]
Big Questions
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Wednesday, the market gave traders a ride. First, it sold off. Then it rallied and appeared to be heading WAY higher. Then it tanked again before getting a small bid into the close. During that time, the VIX […]
S&P Breaks Free
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, SPX broke out on Tuesday, dropping over 65 points. This was its biggest move in over a month. The VIX also broke out running above 19 for most of the day before closing at 18.76. VIX is back to […]
Fresh Index Meat
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Monday, S&P 500 managed to close up 3.52. Meanwhile, the VIX was able to hold onto some of the weekend effect to settle up .12. Monday was a super inside day – when the daily […]
Down Goes VIX
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, The VIX closed at 16.46: a new low for the year. This was on the back of the SPX closing down .35 points. .35 POINTS! That realized volatility is about as close to zero as you can get. We […]
How Low Can You Go
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, Tuesday was an extremely active day for VIX options. The index did about 2.3 times its average daily volume: Odd that it happened on a day the VIX hit its low for the year. At the same time S&P […]
Time To Go Long?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, If we make it through mid-cap bank earnings, my light is going to move to red. VIX closed 16.95, below 17, for the first time in a long time. The S&P 500 rallied a whopping 13 points to close […]
It’s All About Range
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, The SPX closed down .41 points after being up almost 1% premarket. Frankly, the S&P 500 had a really big range if we look at premarket futures moves: S&P futures were over 4170 and closed below 4120. That’s a […]
Rubber Band Man
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, By any stretch of the imagination, Tuesday was an inside day. From high to low, the S&P 500 had about a 22 point range. But that doesn’t tell the whole story … The S&P 500 actually looked like it […]