Check Out Nasdaq!

Hey traders!

VOLQ, is the new QQQ Volatility index being disseminated by the NASDAQ market.

It uses At the Money options to determine its index price, not a large basket of options like the VIX.

With the move the NDX had today at the end of the day,  I look at VOLQ and ask…is it too cheap:

VOLQ has been down a TON over the last few days.

It was down most of the day today as well,  especally the last couple of minutes of trading when the NDX took a nosedive.

Given the run up in the NDX caused by the ‘stay at home’ trade,  one has to wonder this:

What happens next for the NDX with that trade coming off?

Let me be clear FMAGA is going nowhere (FB,  MSFT, AAPL,  GOOGL/GOOG AMZN)

However,  I think it could be due at a minimum for some undersized returns, and is more likely to see more selling.

I see a scenario where the Dow outperforms the NDX and the SPX.  We see positive market breadth (more stocks up than down)  BUT….

Maybe NDX is down…somewhat significantly.

Thus,  I look at the uptick in VOLQ and ask,  is it too cheap…

The answer is probably yes right here,  I would want to own straddles in the QQQ.

The VIX light is RED meaning that we expect IV to drop in the next 30 days.

Your Only Option,

Mark Sebastian

P.S. – Our premier vol trading service called “Volatility Edge,” just notched up another 200% gain trade and in the last month closed trades are up over 480%. To celebrate I’m reopening a few slots with our yearly special. Check it out and join here

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