September Expired, Now What?

The Option Pit VIX Light Is Yellow: Volatility Is Going To Move.

Hey Traders,

VIX expiration was Wednesday morning.

All considered, it came in light at 19.79.

This despite a REALLY ugly day on Tuesday.

So now that September is off the books, what is next?

Wednesday was a strong day for markets,  I’ll have more on that tomorrow.

Today, the VIX futures settled at 19.79 … essentially the worst settlement for everyone involved in the product.

Almost all the open interest went out worthless.

The 15-strike, 16-strike, 17-strike, 18-strike, and 19-strike puts … all worthless.

The 20-strike calls … also worth nothing.

So what now?

Well, I have told you about the pattern we have been seeing in markets on expiration:

We are now at the point where the market is either going to rip higher, or we are truly going to break …

Wednesday’s price action says we are going to go higher.

Today, in my Volatility Edge program, I put out a trade buying VIX Oct puts …

I will also be putting out trades on ProShares Ultra VIX Short Term Futures ETF (Ticker: UVXY) in the coming days.

Your Only Option,

Mark Sebastian

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