How High Could This VIX Go?

Mark Sebastian

The Option Pit VIX Traffic Light Is Green: Volatility Will Likely Go Up.

Hey Traders,

If you were looking for a quiet start to the week …

Well, I hope you didn’t get your hopes too high.

As we look ahead to more earnings, and this week’s historic Federal Reserve meeting …

The Option Pit VIX Traffic Light is now green.

How high can it go?

The answer is …

Quite a bit higher.

Take a look at VVIX, the VIX of VIX.

Considering the fact we are in a green light, VVIX is actually remarkably light.

So what?

This is showing me that even with the VIX sitting over 35 …

We have yet to see that real panic hit the markets.

In fact, if we get some more of that “real panic” …

(Which wouldn’t be that hard to do, considering all of the potential catalysts we have staring us in the face …)

We could see the VIX head to 40 …

Or higher.

Buckle up.

And don’t forget to join Andrew Giovinazzi and I tomorrow at 1:30 p.m. ET for our pre-Fed live event.

We will talk about what we are watching ahead of the Fed …

And even touch on where the VIX could go next.

Your Only Option,

Mark Sebastian

VIX Edge

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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