Eyebrows Up [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. VIX was up 1.08 points on Thursday closing at 20.71. This was on a day that the S&P 500 dipped to 4081.50 – down 36 points – or just .88%. VIX has vastly outperformed to the upside relative to SPX downside. […]

VIX Market Is Predicting HUGE SPX Move

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The VIX rallied .97 points on Wednesday. The S&P 500, meanwhile, was down just over 46 points, a touch over 1.1%.   Not a crazy day on its surface…   But Wednesday was, indeed, a crazy day.   What happened? […]

VIX Trading

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The volatility is too damn cheap!   The VIX closed on Tuesday at 18.66   That would imply the SPX is moving a touch over 1% a day. Take a look at the movement on Tuesday:     We went […]

Good Morning, VIX!

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The SPX closed off the lows on Monday and managed to stay above 4100 … but not before threatening to break lower briefly.   Yet again – and for the third day in a row – VIX outperformed movement in […]

Good Is Bad?

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The SPX topped out on Thursday around 2 p.m. ET. And you could see it coming.   We are at the top of some kind of short term short squeeze right now…you can see it in the VIX futures..   […]

What The Fed Did [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The S&P 500 boomed higher on Thursday, closing up 60.55 points. That’s off the highs, but still way up…   While the S&P 500 had a good day, VIX shorts did not.   The VIX rallied, running over 19 at […]

We’re In for A Run [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   As you know, I wrote up research for Mad Money on Monday…   An important note: I think the VIX is going to be below 15 consistently by the end of the year.   Why?   The downsloping SPX and […]

VIX Is Telling Us Something [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The SPX popped on Tuesday, running 58.83 points – a nice 1.46% rally.   VIX did not participate fully, though, only dropping .54 points …   Why?   The Fed, of course.   This is a huge week…   – […]

VIX Is Telling Us Something [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly.   The SPX sold off on Monday, dropping 52.79 points – good for 1.3 % and a close below 4020.   The VIX rallied and got over 20 for much of the day, before finally closing at 19.94, just short of […]

The VIX Curve Is Shouting [VIX Edge]

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. On Thursday the market ended the day up 44.21 points, good for a 1.1% rise. VIX dropped .35 points. For the rally we had, that’s pretty soft. In fact, volatility was pretty much bid all day on Thursday until a few […]