Looking Ahead After Friday’s Dump
The Option Pit VIX Light Is Yellow, and Volatility Will Move. Hey Traders, Heading into Friday’s trading, we saw a really strong VIX rallying with the market. That correlation between the S&P 500 (Ticker: SPX) and VIX had me worried heading into Friday’s session — and I thought there were real odds of a market […]
Vol Making Moves
The Option Pit VIX Light Is Yellow, and Volatility Is Going to Move. Hey Traders, Thursday was a strong day for the S&P 500, the Dow Jones Industrial Average and the Nasdaq-100. All three indexes were up more the .8%. At the same time, the VIX fell to 18.35 … That […]
Something Shiny That Could Be the Real Thing
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, We have a host of amazing traders here at Option Pit … Among that group is veteran bond trader Bill Griffo and his Power Income letter. Griff has been saying for months that there is a boatload […]
Lots of Movement, But No Change
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, Tuesday looked very ugly for a little bit. The VIX was over 21 — and zooming higher. Meanwhile, the S&P 500 was down 60. And VVIX — the volatility of VIX — was booming. All […]
When Will It All End??
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, The Nasdaq-100 (Ticker: NDX) has been lethargic over the last few days. Almost all the mega cap stocks have been sick since they reported earrings. Amazon (Ticker: AMZN) is in an absolute free fall. Apple (Ticker: […]
Tracking This Item VERY Closely
The Option Pit VIX Light Is Red, Volatility Is Likely to Drop. Hey Traders, The VIX futures curve remains in a nice contango, with the futures price higher than the spot price. As you’ll notice below, VIX is trading at a tasty discount to May, the same from May to June and so on. It’s […]
VIX Truth is Beyond the Headlines
The Option Pit VIX Light is Red, and Volatility Is Likely to Drop. Hey Traders, The S&P 500 (Ticker: SPX) had a really nice day on Thursday, closing up 28 points. But that does not tell the story. The real news from Thursday is what happened in the middle of the […]
Trade Flow Points to This …
The Option Pit VIX Light Is Red, and Volatility Will Drop. Hey Traders, Average daily volume in the VIX has ticked up to about 510,000 contracts per day after running below 500k for a few weeks there. This increase in volume is firstly bullish stock on the CBOE. However … Wednesday was NOT a busy […]
Like the (head) wind
The Option Pit VIX Light Is Red, and Volatility Will Drop. Hey Traders, The VXX is an ETP that holds VIX futures. The basket of futures VXX holds have a constant duration of 30 days to expiration … So it’s always 30 days until expiration for those futures — today, tomorrow and in a year. […]
Spread It Out on the VIX Drop
The Option Pit VIX Light Is Red, and Volatility Will Drop. Hey Traders, The VIX did its normal thing on Monday — it rose marginally. But we could really see what was happening in the VIX futures, which shifted week-over-week: The front two futures dropped week-over-week, although May and June did NOT drop as much […]