options trading

Between SPX Volatility and VIX something has to give

Posted by msebastian on Thu, 02/02/2012 - 4:05pm
Traders,  something HAS to give in this market place.  As many of you know, realized volatility has been in the toilet.  This means that the market has been doing little to nothing for sometime.  Today,  30 day Historical volatility is going to close at under 13%!  That is unbelieveably low.  We can see the slow move in the SPX, and its HV falling off a cliff in the chart below: Graph from livevol (r) www.livevol.com

Will Q1 2012 Be Boring?

Posted by acparis on Mon, 01/09/2012 - 4:06pm
We will be having the second free webinar in our using the VIX to trade series.  Go to our EVENTS page to register. I know it might sound funny, but it is possible that the first quarter of 2012 could be a really boring quarter.  The VIX has normalized and is about to dip below 20%.  The SPX isn’t moving at all.  SPX IV is now trading at the highest premium to 10 day realized IV that we have seen since April of 2011.

and the VXX Goes down

Posted by atg on Wed, 12/21/2011 - 7:54pm
The VXX gets smoked… and we told you so.  For a while now we at Option Pit have been noticing the declines in the VIX even when the market has been falling on the vicious but brief selloffs of late.  That is a sign of volatility fatigue in the broader market and some acceptance that things might be looking brighter for equity prices.  With today as the last VIX settlement for 2011 I thought it was appropriate to mention the near collapse of the price in VXX (ETN that follows the two front month VIX futures) the end of the day.  What the heck happened?

The Inverse IV move in NFLX

Posted by atg on Tue, 12/13/2011 - 3:11pm
The Inverse IV move in NFLX

Guest Blogger Zach Fietch: Dr. Bankrupt or How I Almost Learned to Stop Paying for Anything and Love the Judge

Posted by msebastian on Fri, 12/09/2011 - 5:00pm
Hi All, we will spend some time talking about what happend today in Monday's AM Vol Report.  In brief, a MASSIVE ammount of risk premium came out of options.

VIX at a Cross Roads...Again

Posted by msebastian on Thu, 12/08/2011 - 5:35pm
First some business, Option Pit will be giving a free follow up webinar to Jim Cramer's VIX analysis seen on Mad Money.

Catch Option Pit COO Mark Sebastian on First Business 12/8

Posted by msebastian on Thu, 12/08/2011 - 8:40am
Our COO and Director of Education was on First Business this morning.  You can see his commentary below  

Option Pit Trader Featured on CNBC

Posted by msebastian on Wed, 12/07/2011 - 7:29pm
Today on CNBC's the Closing Bell Option Pit Professional Trader's Club member Marcus Felker was featured in a piece on trading volatility

VIX Points Toward Some Follow Through in SPX

Posted by msebastian on Mon, 11/28/2011 - 7:51pm
First some business, Option Pit has TOTALLY revamped much of our programming.  The new programming is designed to deliver