BY MARK SEBASTIAN
November 30, 2023
Hey Traders,
The SPX tried to break out on Wednesday…it came within a couple of ticks of the high from July
SPX closed 4588.96 on 7/31 on Wednesday it topped out at 4587.64 just a tick away from the July high.
That might have been a top for the market. The VIX actually went up on Wednesday. VIX had been trying to break lower but the last few days it has just sat…
The VIX ended up closing up on Wednesday closing just below 13 at 12.98. WHile VIX might seem like its bottoming out, the VVIX, the cost of VIX options is also going up…
VVIX closed at 87.79…relatively low compared to how it has traded recently…but I would note that the VIX going up at a cheap price and the VVIX going up implied traders want to own calls on VIX.
In the end here is the story…options on SPX are WAY too cheap. The 4560 staddle for December 12th, 2 fulls weeks away is only 70 dollars
THIS IS WAY TOO CHEAP
70 dollars for PCE, Powell Speaking on Friday, Non-Farm Payrolls, whatever else.
If you are a trader…recognize the opportunity in front of you.
Questions about that? Leave a comment below!
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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