Options Education

VIX and VVIX are Quietly Moving

The SPX has now been mostly flat this week, after being mostly flat last week.  VIX has cause a small bid (if you want to call it that) to get itself back near 11.5%.  VVIX though has had a really nice rally the last week or so.

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It is SUPER cheap to Hedge

VIX settled at 11.07 today,  near the low for the last year.  The VVIX which is the VIX of VIX settled below 80%.  A combo that points toward options premiums being cheapin VIX at the same time VIX is low.  Even the spread between the VIX cash and the VIX future (the true underlying for VIX options) is not exceptionally wide given how low VIX is currently.  The Feb future settled 13 dollars and the Mark future settled about 14.40 spreads of less than 2 bucks and less than 3.5 dollars respectively.

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