What Next After VIX Smoke Session?
The Option Pit VIX Light Is Red, and Volatility Is Likely to Fall. Hey Traders, On Monday, the VIX had its lowest settle since the pandemic began. The “fear index” actually crossed 19 and appears primed to potentially keep dropping. It was, in short, an all out volatility crush. Not only was implied volatility down […]
Am I Wrong Here?
The Option VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, While the VIX moved over 20 the day after I floated the idea that it possibly might not … That wasn’t really my point. The idea yesterday was that the VIX was probably heading lower, back to more serene, pre-pandemic levels […]
Three-peat: Is the VIX Done with 20?
The Option VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, That is three days in a row under 20 for VIX. Wednesday’s close of 19.23 is the lowest for the VIX since *checks notes* Feb. 21, 2020. That’s the day before the Covid meltdown started. […]
An Especially Profitable Reversal
The Option Pit VIX Light Is Red, and Volatility Is Going to Drop. Hey Traders, The VIX closed below 20 for the second day in a row on Tuesday, something it hasn’t done in more than a year … And on the anniversary of it trading 82, no less! This isn’t a flash in the […]
Going Down: VIX Heads Below 20 — Where to Next?
The Option Pit VIX Light Is RED, and Volatility Is Going to Drop. Hey Traders, Well, it happened a little faster than I anticipated … But the VIX got SMASHED on Monday — and the “gamma squeeze” I wrote about yesterday morning started rolling. As the VIX began to fall, VIX […]
The VIX Light Is Red — Let’s Make Green
Thanks for stopping by! If you’re here via my April 14, 2021, VIX Edge post, be sure to join me this evening for my can’t-miss webinar “Learn My 3-Step System To Trading NEW Markets.” *** The Option Pit VIX Light Is Red, and volatility will continue to fall. Hey Traders, Well, it took a bit […]
The VIX Is Slowing
The Option Pit VIX Light Is Yellow (for now), and the VIX will move, though direction isn’t certain. Hey Traders, While the VIX had and up-and-down day on Wednesday, overall it is slowing What am I seeing that maybe you aren’t? The short answer is: the VIX curve. For the […]
The Market’s Next Move
The Option Pit VIX Light Is Yellow, and there will be big VIX moves, though direction isn’t certain. Hey Traders, There has been a huge range in the VIX over the last five days Check out these highs and lows … Even Marvin Gaye and Tammi Terrell would have second thoughts […]
QQQ Bloodbath at an End?
The Option Pit VIX light Is Yellow, and volatility will move, though direction isn’t certain. Hey Traders, On Monday, I discussed the relationship between VIX and VXN — the VIX of Nasdaq 100 (NDX) options — to illustrate how high Nasdaq 100 volatility is right now. That spread, which was wide already, stretched MORE as […]
Alert: This Indicator Is Topping Out
The Option Pit VIX Light Is Yellow, and we are going to see strong moves up or down in the VIX. Hey Traders, The two biggest VIX indexes are the VIX (volatility on S&P 500 — or SPX — options prices) and the VXN, which is the VIX of Nasdaq 100 (NDX) options. The SPX […]