What’s The Whole Story?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, On Monday, the S&P 500 managed to close up 4 points after being down as much as 30. The VIX closed unchanged on the day. Considering the weekend effect, that means the VIX was effectively down. This week lines […]
Fireworks Lit?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Tuesday went some way to proving my point from earlier this week – options are too cheap. I had mentioned the at-the-money straddle for Thursday’s close was just 43 points. How is it priced now? With decay, if you did nothing […]
Scooped!
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Monday was completely an inside day for the market… The S&P 500 closed up .37%, the NDX down .25% But intraday there were some moves!!! Led by the RUT… The early morning selling was nasty with the RUT dropping more than […]
Massive Event Coming Today
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Hey Traders, The S&P 500 closed up 23.02 points on Thursday after threatening to go red. The VIX at one point was nicely positive before it closed the day down by .1 points. VIX futures were actually up a touch. Why? […]
Risk In The Market
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 closed up 56.54 points yesterday while the VIX got smoked, falling .85 points to 19.12 Interestingly, the RUT was the weakest of the indexes, rallying only .97%. So what gives? Wednesday seemed risk-on? Was it? XLF only rallied […]
NVDA Breakdown
Hey Traders, The banking crisis caused a risk on/risk off trade flip. Teach used to be risk on – now it’s risk off. Risk off was banking, energy, and consumer staples – they are now risk on. Since it appears we are in a risk on environment for the time being … what does that […]
Where’s The VIX Headed?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX closed down .63 points to 19.97: back below 20. Why? SPX only closed down 6.26 points, and the NDX – which was down a decent amount at one point – only closed down .53 points. XLF, XLE, and XLI […]
S&P Holding Its Own
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 tried to rally above 4000 on Monday. The VIX got crushed; down 1.14 points on a Monday is a big move for VIX. But why are things rallying? There is a quasi-banking crisis, the economy might go into […]
An Ugly S&P
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. For most of Wednesday, things looked pretty darn hunky-dory. Vol was way down, VIX was down, and the S&P 500 was mostly up. Then the Fed statement came out and futures took off … and then they didn’t … and then […]
VIX Smokeshow
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The SPX had a strong rally on Tuesday following up on Monday’s move closing above 4000 to 4002.87. The VIX took it on the chin, falling to 21.38. The VIX curve is now fully in backwardation: What is interesting is that […]