We’re Witnessing The Great Repricing

Mark Sebastian

The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move.

Hey Traders,

The S&P 500 was up on Thursday, its fourth straight day of gains.

The SPX’s move higher – 57 points, or 1.3% – should represent a VIX of about 20.60.

Theoretically, if things continue as is, the VIX is going to plummet.

But will it really?

Historically, the week after the July 4th holiday tends to be bullish.

Last year we had a great week for market, then the VIX shot higher, and has not looked back since:

I continue to like owning the VIX July 24-strike puts.

But I like a hedge against them because I think we could see some post-holiday fireworks in the near future.

Your Only Option,

Mark Sebastian

VIX Edge

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

Share This Article