VIX Is Primed for A Move

Hey Traders,


The Option Pit VIX Light turned Yellow on Friday morning.


This means we are looking for a strong move — either up or down — in the VIX.


And …


Monday morning, the VIX was down 4 points.


Will it keep going, or is this a big bear trap?


I can tell you this:


The market is positioned for a drop.


Take a look at open interest in puts and calls in the VIX options:



With the VIX blowing up and volume has increased … but the trading has actually been mostly to the downside.


Put open interest is 4.47 million contracts … call volume is only 4.08 million.


That’s right, coming in this morning — on the heels of a REALLY ugly close on Friday — there were more puts than calls.


And take a look at where the open interest lies:


The market is HEAVILY long at the money on downside puts.


Traders have been buying every put option from 26 to 17 they can.


This is not a market that thinks Thursday’s VIX spike is going to last …


And I predict VIX light will go Red tomorrow morning.


The Option Pit VIX Light Is Yellow, and Volatility Will Move ( … and we’re leaning toward down.)


Your Only Option,

Mark Sebastian

One Reply to “VIX Is Primed for A Move”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.