How To Take Advantage Of Cheap VIX Options

Mark Sebastian

The Option Pit VIX Traffic Light Is Yellow: Volatility Is Likely To Swing Wildly.

Hey Traders,

The VIX is trading around 27.50.

Still historically high … but much cheaper than where it was trading last week.

The S&P 500 (Ticker: SPX) is back above 3,900 and climbing.

And with the Option Pit VIX Traffic Light now yellow … we could see a swing up or down.

We could easily see VIX move back to 21 or 22 …

Or go back to 30.

In fact, we might see both before VIX expiration on July 20th.

But here is the beautiful thing …

Check out VVIX, the VIX of VIX:

It’s below 90, trading around 89.

That is as inexpensive as it’s going to get.

This means I can buy strangles or puts with call spreads on the cheap …

Something I intend to do.

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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