A Trade for That
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX closed Monday down .72 points, a pretty big down move on the day. This is likely because the S&P 500 was up big and then wasnt. Now, the VIX did not close on the lows, but that did not […]
Navigating No Man’s Land
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. If you trade S&P 500 and VIX options you are really only looking at one chart: What we have here is a convergence of 3 very important technical levels: The 50 day around 3979, the 200 day moving average around 3940, […]
Valuable Info For Your Trading Today
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The PCE inflation number will be delivered this morning I have written a few posts about the effect this is having on VIX. Despite relatively low realized volatility in the SPX, VIX is pricing in movement around 1.25% a day right […]
Powder Keg-in-Waiting
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX closed down .58 points to 22.29 on Wednesday Given the S&P 500 only moved six points, the VIX held up pretty well. I think this points to how important consumer inflation (PCE) is on Friday … Iit is clear […]
VIX Is On The Move
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX had a strong on move Tuesday, aided by a long weekend running up to 22.87. It helped the S&P 500 drop 2%, falling 81.75 points and below 4000 to 3997.34. The VIX is now in partial backwardation: Partial backwardation […]
Risk Is In the Air
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The VIX light has been on yellow for months. It briefly has flashed both red and green in that time, but not really long enough for a change in trend. Here’s a quick reminder of how I use […]
Risk Is In the Air
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Thursday was a total rug-pull. Up until 3 p.m. ET, it looked like the market was going to close on the highs. I thought so … and so did every trader I talked to. Then the market […]
Long Way to Nowhere
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The SPX ran up 11.47 points on Wednesday while the VIX dropped .68 points to 18.23. That’s a stone’s throw from a new recent low – and we might get there. But I want to point out an area […]
Long Way to Nowhere
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 dropped a “whopping” 1.14 points on Tuesday. That’s what average investors saw. But the S&P 500 had a huge range on Tuesday … it moved over 90 points from high to low, whipsawing everyone it […]
CPI Cheat Sheet
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 ran up 46 points on Monday. Could that be a bit of a potential front-run ahead of CPI today? Maybe … but VIX only dropped about .19 points. Yes, it was coming off a weekend, […]