options trading

VIX Needs to Pop or Futures Need to Collapse

The Cash VIX vs VIX futures spread is back to near 3.00.  That is WAY too wide this close to expiration,  with out any weekend muddling the spread dynamics



THis cannot stand, either VIX needs to pop (less likely) or VIX futrures need to implode (more likely).  The spread should be 1-1.25 right now, MAYBE 1.5% if we were really worried.  Something has to give.

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VVIX Seems to Agree

The news today is going to be the rally in the S&P 500 and the continued utter obliteration of VIX.  But I think the more interesting part of the story is the way VVIX has dropped the last couple of days followe up by its complete and utter dismemberment after the fed announcement.  With VIX dropping more than the S&P rhas rallied along with the crushing in VVIX, there may be a run higher in SPX back toward its highs.

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