We are seeing some very interesting and contradicting signals from the equity markets.
Bonds and VIX sending Conflicting Signals
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Playing the VIX at Expiration Can Have Edge
As many of you know the VIX options are quite a unique beast.
SPX IV Breaks Out, Unit Puts Bid
In the least shocking sell off in the history of mankind (we called it here), the equity markets once again proved why they are NOT forward looking, they are reactionary.
Are AAPL options cheap enough to buy?
There is a strange effect going on in the option market right now.
AAPL Iron Butterfly Might Be Interesting
As I looked at AAPL on LiveVolPro today I noticed something interesting a possible split strike butterfly play.
VIX Activity Pointing Toward Continued Sell Off
There a major chink in the VIX armor developed based on the relationship between VIX and SPX. For once VIX sold off harder than SPX rallied.
SPX Term Structure Screwy
Taking a quick look at premium bought and premium sold in SPX, it is clear that while the SPX was up yesterday, the premium buyers were out in force.
VIX down, Volatility Up, AAPL Down
The SPX rallied more than it sold off Monday, and yet, the VIX barely budged, falling less than 2%. On a strike-to-strike basis SPX IV was up.
SPX IV at Support
Yesterday, for a brief moment a few interesting things happend:
Here's a VIX Play
Take a look at where the VIX is currently trading 32.80, right at the low end of the range of the index since the market blew up almost 3 months ago:
SPXpm May Reveal Big SPX Pit Preferences (possibly)
As I stated in yesterday's post, I traded a contract on SPXpm, and I noticed a couple of things.
VIX heading back to 35, Contango May Come Early
One of the results of 'volatility exhaustion' is that we may see two things: