Orange Santa is in a holding pattern, Zero Decay pumping up

BY ANDREW GIOVINAZZI

December 18, 2024

Yo Pit Crazies,

0 Decay is alive and well as VIX makes a quick uptick into the FOMC announcement this week. I thought it would be helpful to take a review of the SPY Jan17 2025 610 calls. But before I did that I closed another Big Money Flow idea in WalgreensBoots Alliance (Ticker: WBA) so my students either took the 40% gain or rolled up for the house money into April. That is a good harbinger for 0 Decay.

Note below again, implied volatility is rising once again for the Jan17 610 calls.

Does this mean we have a big move coming in VIX and SPX?

Click here for an easy system to see what to expect.

Look for 3 ways for volatility to move

IV at the strike is just one way to look at option volatility.

VIX is a 30 day measure of volatility. I can follow the direction of VIX, the change in the VIX curve or a change in the VIX Zone. I will put a video out next week on this very subject. Suffice it to say:

VIX was up, but in the same Zone with the curve the same.

I think mostly traders are looking for a reason to sell since the rally has been so strong but upside IV is still increasing. Just because SPX goes down, does not mean it stays down.

I still think IV and VIX will be lower by Friday.

To Your Trading Success,