The Trade That Caught My Eye
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The SPX dropped .73 points on Wednesday, a far cry from its lows of down more 60 points. It had a wild day! The index broke 3,950 for a hot minute and rallied over 60 points even briefly getting up on […]
Stepping Aside From AAPL
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. I received these questions – and variations on them – over the past couple of days: Mark, the VIX has been in contango for weeks. Why are you still in a yellow light instead of a red? The […]
Why Didn’t VIX Drop More on Monday?
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. On Monday the S&P 500 closed up 1.19% – or 47.20 points – at 4019.81. The VIX dropped .04 points, closing at 19.81. If that seems like a small drop given the rally, well, there are reasons. For starters, you could […]
What We’ve Been Waiting For
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 boomed higher on Friday and the VIX took it on the chin, closing down .67 points. Interestingly as the rally got stronger, VIX came off the lows. That’s not usually a great sign. A little pop in volatility […]
The S&P Is Awake!
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 opened up almost 25 points, only to close just above the lows of the day…down 62.11 points. The VIX, which saw January options roll off (settling at 19.09) went from down on the day to back above 20, […]
The S&P Is Snoozin’
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 is a snoozefest! At least for the last three days. CPI had almost no effect. Earnings from the banks … Nada. Goldman Sachs was down 6.44% on Tuesday. The S&P was down a whopping .2. Can this trend […]
This VIX Question Raised My Eyebrows
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Is the VIX broken? This is a question I got from one of my neighbors recently. It caught me a bit off guard because I don’t really get a lot of financial questions here in Austin. The […]
Changing Of The Seasons
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Thursday’s CPI was a huge let down for volatility buyers. The market was looking for a more than 80-point move. We got 13. Even the intraday range barely approached 50. The VIX, though, got completely smoked dropping to 18.83. This presents […]
Playing The Earnings Season
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The SPX had a strong day ahead of CPI, rallying over 50 points. As expected, the VIX rallied on Wednesday as well, closing at 21.09. Do not forget how I game-planned out the result, and given the move we had on […]
CPI Will Answer This Question
The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 rallied just over 27 points on Tuesday, while VIX dropped like a stone to 20.58 – down 1.39 points. Those moves were a result of the European Central Bank saying it may slow or stop rate hikes soon. […]