Does S&P Spell Fortune Or Doom?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. On Monday the S&P 500 closed up .89%, the Dow more than 1.2% and the Russell 2000 up 1.07%. The laggard was the NDX (or QQQ), which was only up .2%. Monday was a VERY busy day for VIX options, which […]
Does S&P Spell Fortune Or Doom?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Friday saw quadruple-witching and the markets nicely lower, although well off the lows. On a daily basis it seems the S&P 500 is up or down 2% at some point … only to see the index revert back to a mean […]
Trading Is The Way
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX closed at 26.14, off the highs but clearly up on the day. SPX only closed down 28.63 points. Considering it was down over 70 at one point, that’s almost a win. So what’s going on? […]
VIX Is Still Kickin’
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Of course, as soon as I go on a short vacation … everything goes sideways. VIX blew higher last week moving from near 18 to over 30 to now back below 24. You can see the movement in […]
Back To The Futures
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Yes, the OP VIX Traffic Light is still yellow. We’re probably going to need to see a dip to 17 before it can turn green. For the light, remember … Red: When I see (or foresee) the VIX […]
Return To No Man’s Land
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. We were pretty clear on Tuesday. Heading into the day, option prices were too cheap. The S&P 500 was pricing in a 38 dollar move, we moved more than 60 points. VIX took notice and perked up a bit, popping almost […]
It All Starts Today
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Because there is no getting away from (contradicting) macroeconomic events right now, the market has been in a chop mode. We have bounced between 3850 and 4150 multiple times over the last few months … In the past 3 months, the […]
The Scoop On Volatility
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. On Friday the market melted higher with the SPX running up 1.61% to 4045.64 VIX got crushed, closing below 18.50 at 18.49. VIX futures also fell hard… The drop in the curve across the board is hard to ignore… This is […]
(Still In) No-Man’s Land
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. On Thursday, the S&P 500 looked like it was going to meander to the 200-day moving average at 3940 and park there … Then Fed Governor Bostic spoke and the S&P 500 took off… The S&P 500 went from down on […]
Going Down (But Not Like You Think)
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. So, we have a yellow VIX Light. But it is closing in on green. Remember … Red: When I see (or foresee) the VIX heading down and volatility dropping. Yellow: The VIX could go either way depending on a wide […]