Today Was the Day
Hey, Traders. The VXX reverse split on Friday. Earlier today the ETP was trading 39.75 with ¼ the shares outstanding. If you had 100 shares for $10 on Thursday, you had 25 shares for $40 on Friday. No change in dollars — but a big change in VXX price. This is big, because the decay […]
Flow Tells the Story
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop Hey Traders, The VIX closed at 18.71 on Thursday, up 1.21 points from the previous finish — and even briefly traded above 19. You would think that, with the top capital gains rate potentially doubling, traders would be worried. And given the […]
Going Down … Slowly
VIX Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, The VIX got hammered on Wednesday. With the S&P rallying 38 points — still below its high from Friday — the VIX index got SMOKED: So the question is … Where to next? On Thursday morning VIX was continuing its […]
A Hint of Yellow?
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, Mid-morning yesterday the Option Pit VIX Light — the indicator I developed to help me decide when to hedge — began to flicker yellow. Three of the four inputs were saying, “If things stay like this we are going yellow.” […]
A Frothy Mug of VIX
The Option Pit VIX Light Is Red, and Volatility is expected to drop. Hey Traders, You can usually tell the magnitude of a big selloff in the market by how the VIX closes. Does the index close near the highs, meaning traders are racing for cover and buying protection? Or … Does this VIX close […]
Smarter Not Harder
The Option Pit VIX Light Is Red, and volatility will go down. Hey Traders, Despite what you read in the media… VIX is going lower. And even if it does pop, we’re not going to see 80 — or 40. We could get to 30, I guess, but just know this … We are more […]
Going Looow
The Option Pit VIX Light Is Red, and Volatility Is Going to Drop. Hey Traders, Yes, the VIX is at its lowest levels since the pandemic. But one thing I want you to remember is that the VIX can go a lot lower from here. (That was a big topic in my big webinar last […]
How to Know When You Have an Edge
The Option Pit VIX Light Is Red, and Volatility Is Likely to Go Down Hey Traders, Every post that I write starts with this: “The Option Pit VIX Light Is _____, and Volatility _____.” I give you this information because it is the most important part of my trading. Currently, […]
The News I’ve Been Waiting For
The VIX Option Pit Traffic Light Is Red, and Volatility Is Likely to Drop. Hey Traders, On Friday afternoon Barclays announced the big news volatility traders all over were waiting for … VXX is going to have a 4-for-1 reverse split on Friday, April 23. What That Means If you own 100 shares of VXX […]
How Long for the Tech Bull Run?
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, With the recovery in the QQQ ETF over the past week — which 100% led the S&P 500 higher — many tech stocks charts look A LOT better. So, is Apple (Ticker: AAPL) going to 140? Is Microsoft (Ticker: MSFT) […]