Why Can’t VIX Get a Lift?
The Option Pit VIX Light is Yellow, and Volatility Is Going to Move. Hey Traders, I’ve written over the past few days that we’re heading for all-time highs soon … AND that the VIX might drop below 20 this week. Well, I was certainly wrong on the latter. On the former … That’s still up […]
Two Days of Selling … Now What?
The Option Pit VIX Light Is Yellow, and Volatility Will Move. Hey There Traders, The S&P 500 had a rough day on Wednesday. The second in a row. Over the course of two days, the SPX has given up 80 of the 90 points it made on Monday. But what is volatility doing? Remember, volatility […]
SPX Drops, VIX Yawns
The Option Pit VIX Light Is Red, and Volatility Is Likely to Drop. Hey Traders, The big indexes all got smoked yesterday. The S&P fell almost 1%, while the NDX and the Russell 2000 dropped closer to 2%. Yet I’m darn bullish heading into Wednesday’s trading … Why? Take a look at how the VIX […]
VIX Is Primed for A Move
Hey Traders, The Option Pit VIX Light turned Yellow on Friday morning. This means we are looking for a strong move — either up or down — in the VIX. And … Monday morning, the VIX was down 4 points. Will it keep going, or is this a big bear trap? I can tell you […]
Spike or Swell
Hey Traders, On Thursday, the VIX went from 21.34 to over 30 before settling at 28.89. That is a huge move in the VIX by any standard. But will it be meaningful a month from now? That depends on if the VIX move was the beginning of a “swell” or just a “spike.” Spikes in […]
Another Big Trade in VIX
Hey Traders, The VIX had a huge range on Wednesday, moving from a high of 25.04 to a close of 21.34. When the dust settled, it was a range of 3.73 points after closing just off the lows. If you are a Cboe Global Markets (Ticker: CBOE) shareholder, I have good news […]
I Call Top (And Bottom)
The Option Pit VIX Light Is Red, and I like short volatility plays. Hey Traders, There are two major volatility indexes for the NASDAQ 100 … VXN: Essentially the VIX calculation, but run over NDX options. This index uses all options that have a value (a bid) and calculates the overall implied volatility […]
Traders Still Fading VIX
The Option Pit VIX Light Is RED, and short volatility is likely to work in the coming weeks Hey Traders, I wrote last week about a trader bought more than 100,000 March 18 puts for .10 Today, we’re seeing similar action in March. This time, traders are coming for the 19 puts paying .12 … […]
A YOLO Vacation
Hey Traders, I often reference volatility indexes other than VIX in this space. Last week, for instance, we talked about CBOE Energy Sector ETF Volatility Index (VXXLE). I mentioned it was climbing and that I thought calls were going to pay … They did. The XLE March 46 calls […]
VIX-UAL Evidence
Hey Traders, When the VIX complex is in contango (futures prices are higher than spot prices), holding VXX is a loser. Le-hoo-suu-her. This is the current VIX curve: It is in a HUGE contango, with March trading 3.25 points above the VIX index. What’s more, April futures are a monster 6.15 premium to the VIX […]