Andrew Giovinazzi's blog

The Vol is Realized or will it?

  VIX managed a .17 up move near the close today as the SPX turned in a .01 percent move.  After a near 4 day holiday I would have expected the VIX to be up a bit more today but it was not the case.  The weekend is usually good for bump in VIX but today is not the case.  Why?

The big reason is that the liquidity providers took down IV in SPX early in the cycle last week and that pretty much killed it.  11.37 to the mid-9’s in 2 days so there was a bit of haste early in the week.  This is setting up for some interesting trade in VIX futures into the end of December.

Blog Image: 

Can’t mine Bitcoin? Buy the shovels.

When I first walked onto a trading floor in 1989 the big thing was airline takeovers.  They were the hot stocks of the day and even DJT got in the action with making a bid for American Airlines.  Since then I have seen biotech, nanotech, tech, internet, 3d, emerging markets, etc, etc…. as the latest hot thing. You know when something is hot when a company goes public on the just the idea that they are going into an industry.  A mini-bubble can happen within a bull market and can come and go with barely a ripple.  Now we have Bitcoin (BTC).

Blog Image: 

How do I trade this VIX?

Besides the Weekly options, the VIX is the best new product in a long time since the SPX.  It spawned a whole other class of ETF’s and made all the old time Cboe seat holders a few extra bucks.  The Bitcoin future and options will be out soon which might outshine them all.  But really I want to talk VIX today.

Blog Image: 

TEVA is in the basement and it is spooky there

2600 looms large.  We discussed some trade ideas in our Gold Lab today and as much as I love some downside put spreads I can‘t help but think 2600 is soon.  As we roll into the close VIX could not hold the 10 handle and the  VIX futures could barely keep their tiny gains.  Maybe 2600 by Friday since rallying is really all we do.

Blog Image: 

Pages

Subscribe to RSS - Andrew Giovinazzi's blog