What is going to determine the VIX?

Mark Sebastian

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

Initially when the Fed released its statement yesterday, the market was EUPHORIC!

The S&P 500 shot up and the VIX tanke.

Enter Chairman Powell …

The VIX meanwhile … remained tepid.

It rallied only .05 points, while the curve actually flattened, even as it entered a full contango:

The fact that the curve flattened and rallied is a little eyebrow raising causing me to ignore the contango.

Now here is what I am really interested in:

Vol of vol has bottomed out and traders are starting to buy VIX options again …

Here is VVIX against SPX. I circled what I think it important:

I keep saying we break 3,400…

Do you think I am right?

Questions about that? Drop a comment below!

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.

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