Don’t look now but VIX options might be getting…cheap!
That’s right I said it…
The VVIX (the VIX of VIX options) closed at just above 103. This thing is what measures what we call “vol of vol.”
A double mouthful I know but really this is just how much what we measure volatility with, ie the VIX, is itself moving around.
Normally a price of 103 would be high, but in the current environment, it is low.
VVIX is the lowest price it has been since the Feb melt down began.
Is this a sign that the VIX might be heading lower?
It is certainly a sign that the market is expecting less movement.
However, I would point out that when VVIX has gotten close to 100 in the last 6 months…VIX options have been gobbled up.
The point is, if one is looking to put on a play in this weird VIX environment, now might be the time to put on long VIX options.
The VIX light is Yellow: Could go up or down, but is going to move.
Your Only Option
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