Options Trading and Education Blog

Morning Vol Report Market Likes

Posted By Andrew Giovinazzi Wed, 03/01/2017 - 9:32am



Take a look at our Saturday Class here on Butterflies


Am Vol Report 2-28

Posted By Mark Sebastian Tue, 02/28/2017 - 9:33am

Am Vol Report 2-28

Posted By Mark Sebastian Tue, 02/28/2017 - 9:32am

Our Founder on BNN talking Markets $SPX and $VIX

Posted By Mark Sebastian Mon, 02/27/2017 - 11:59am

Morning Vol Report Watch Apr VIX

Posted By Andrew Giovinazzi Mon, 02/27/2017 - 9:15am

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Trade of the Week JWN

Posted By Andrew Giovinazzi Fri, 02/24/2017 - 11:34am

 See our Saturday class on Butterflies here

Are the VIX futures pricing another election?

Posted By Andrew Giovinazzi Thu, 02/23/2017 - 4:30pm

See our Saturday Butterfly Class here

As the SPX tilts to all-time highs again, VIX is meandering down to the 11 handle after getting oversold last week into the holiday.  What was strange was the action in the VIX future term structure.  VIX futures lifted on a day when there was scant market activity and close to close volatility was even lower than the posted 10 day 4.28%. Every future in the VIX term structure was higher.

There is not enough on the domestic calendar to move the futures higher.  The Fed was vague on raising but it is a question of when not if so the market is discounting that.  There is above average volatility in the some European VIX- like contracts pointing at the elections in France.  That could be the source of the rise in the futures.


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With Brexit and the US election fresh in the minds of traders, the run up was where the volatility was only to be summarily crushed afterward.  There is a trade for that.

The Trade

Own call butterflies in the VXX expiring around the French election and hedge with some puts that expire after the French election date.  That way if the vol run up does not materialize, the puts should pay for the flies.

Positions in SPX, and various vol products in the PA and fund I manage risk for, Karman Line Capital LLC.


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Morning Vol Report VIX should be red

Posted By Andrew Giovinazzi Thu, 02/23/2017 - 9:12am

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More FB Upside?

Posted By Mark Sebastian Wed, 02/22/2017 - 3:57pm

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FB had a nice move up today and IV caught a tiny bid.  I think this points toward what could be a swift move higher.  While exploding vol on an up move can mean that a move is topping out.  When a stock makes a strong move higher on limited news and IV only ticks up a touch,  I think that typically means the stock is going to make a strong move higher on the break out of a range.  I like FB to move quicly to 140 maybe even 145 before all is said and done.  Really as I look at vol,  call options are cheap anyway.  I like owning them.


LivevolX for Lightspeed

The Trade:

I like FB Calls

Am Vol Report 2-22

Posted By Mark Sebastian Wed, 02/22/2017 - 3:48pm