Option Pit Trade Idea of the Week: Bitting a Bad AAPL

Sound did not work, I ended up buying the Oct23 110 put for 1.04 I like it because IV is low and because I think aapl is going to move toward 108 next week. Mostly because its underporforming the market badley
Blog Image: 

VIX Options Finally Found Buyers

Traders have short memories,  but not that short.  The VIX had a nice recovery today on what was really a mild sell off.  Down 13 bucks is only about .7%.  The VIX though popped up 1.5% back over 17.  This means the market thinks there is still good odds for a lot more 1% daily moves plus.  I would note that the curve is still in contango.  Whtas interesting, maybe even more than VIX itself was the huge move in VVIX.  The VVIX popped 10% to nearly 100 again.

Blog Image: 

VIX closes below the 200 day MA and the sky did not fall

Look for our volatility webinar this Nov 7th

Normally I don’t put much stock in 200 day MA but for the first day in a while things seemed to have to settled down.  VIX cash darn near broke through 16% before any earnings of consequence came out.  ATM volatility is down to below 13% in the Oct serial cycle.  Last week it was 18%.  The term structure for the VIX futures is back into a normal contango and the volatility productslost their daily gain status.

Blog Image: 

Oct VIX asks if China will open already and .....

Look for our webinar on fixing broken positions real soon.  Looking Nov 7th.


I seem to remember this time last Wednesday when the SPX was trading just below 1900.  Chinese markets were closed for a holiday week and the weak jobs number on Friday created the whipsaw we had for the last week and a 100 point rally in the SPX.  Like we saw twice already since the late August debacle, the rallies were as vicious as the selloffs. 

Blog Image: 


How long are traders going to let long dated bond vol stay this cheap. It has been quite a while since the two have actually traded with IV above HV in relative terms.  And the underlying is still flying around.  At this point something has to give,  my guess is the IV ticks up.


Livevol X for Lightspeed

The trade:  i like owning premium in TLT

Blog Image: 

VVIX is Normal

Today we saw a few seriously bullish trends.  The VIX cash index fell below the October future,  the November future is now trading at a discount to December and flat with the cash index.  Additionally,  the VVX has finally been slammed back into normalcy by the market.   VVIX is now near 90 and below its 200 DMA.  A sign that the VIX of VIX is reverting to its mean.  This is usually a sign that VIX is going to do the same.  I would not be shocked to see a 17 VIX in the next week or two.

Blog Image: 


Subscribe to RSS - blogs