Attack The VIX Either Way
Sample TextThe Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Well, needless to say I did NOT add to any VIX short position on Thursday. The disadvantage of sometimes writing these at night is I am trying to gauge what might happen in the morning. And on Thursday, the […]
Light Volume, But Big Money In The VIX
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Volume in the VIX option pits continues to be weak. On Wednesday, VIX only saw 267,000 contracts cross the tape! But what was interesting was … While call volume was light, put volume was not. What does this mean, and […]
Why VIX Options May Be Going “On Sale”
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Over the past few weeks, one of the puzzling aspects of the VIX has been the cost of its options. The VVIX, which is the VIX of VIX, has been REALLY HIGH. Which means the cost of VIX options — […]
My VIX Prediction For Friday
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Well … that sure was fun, wasn’t it? The VIX is now 17.15, a nice drop of over four points from Thursday’s close! But now that we are back to 17, where to next? My Option Pit VIX Traffic Light […]
Are VIX Pits Dying?
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Last week there was a quick rumor that the CME Group might buy CBOE holdings. CBOE popped on that news. Trading at CBOE, in S&P 500 (Ticker: SPX) has been robust over the past few weeks. Which is why when […]
Should The VIX Be 12, Not 21?
The Option Pit VIX Light Is Yellow. Volatility Will Move Wildly. Hey Traders, Despite the “huge” selloff over the last four days, something surprising has happened. This unusual occurrence means one of two things … Here is what I think — and what I am doing about it. The VIX closed […]
Hedging A Bouncing VIX
The Option Pit VIX Light Is Yellow: Volatility Is Going To Move Wildly. Hey Traders, The S&P 500 (Ticker: SPX) had a VERY ugly close on Wednesday: It caused the VIX and the VVIX (the VIX of the VIX) to pop higher, pushing the Option Pit VIX Traffic Light to yellow. The good news is […]
Is AAPL Preparing To Squeeze Higher?
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, I do not usually talk about equity options in the VIX Edge. But I want to point out something really unusual happening in Apple (Ticker: AAPL). Over the last two days, there has been an absolute explosion in AAPL’s option […]
VIX Up, VIX Calls Down?!
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, On Monday, the VIX was up 0.67 points from it’s Friday close by the end of the day. At the same time, long VIX calls were losing money … What gives? Is it just theta (time decay)? Or is there […]
A Juicy VIX, But A Quiet SPX?
The Option Pit VIX Light Is Red, And Volatility Is Likely To Drop. Hey Traders, Monday’s trading brought the VIX back to life. Weekend adjusted, VIX is up about one point. But should it be? The VIX at 17.06 would mean the S&P 500 (Ticker: SPX) is moving more than 1% a day … But […]