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