The Option Pit VIX Light Is Red, and Volatility Is Going to Drop.
Hey Traders,
Yes, the VIX is at its lowest levels since the pandemic.
But one thing I want you to remember is that the VIX can go a lot lower from here.
(That was a big topic in my big webinar last night that you should totally check out right here.)
Take a look at where the VIX traded for all of 2019 …
To begin the year, the VIX took a nasty dive and then touched all the way down to 11.03.
While index had a few spikes, it mostly traded below 15 and typically traded in the 12-14 range.
We are heading toward a similar market.
We MIGHT see a few touches over 20 throughout the rest of the year …
But the trend for VIX is even loooweeer.
Looking at the future curve, I see HUGE opportunities.
The July future is still 23. August-October are between 23 and 24.
This means that they are trading at nearly 7 points over the cash VIX market …
The VIX could go up to 20 and these futures will STILL be overpriced.
In my Volatility Edge kickoff that just wrapped up earlier this afternoon, I walked through exactly how I’m setting up a trade to take advantage of this term structure.
The good news is, you still have time to join Vol Edge today and watch the replay — because this trade is still there to be made.
Either click here to check out the details or call Ted, our head of Customer Care, with any questions at 1-888-872-3301.
Here is a hint, though, I set up a put in July …
The Option Pit VIX Light Is Red, and Volatility Is Going to Drop.
Your Only Option
Mark Sebastian