The SPX tanked yesterday. This was big news everywhere…or was it?
Where Is the Vol?
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Option Market Predicting a Yawn for Non-Farms
Last week we wrote how we expected the ATM straddle to go out somewhere near 18 dollars into non-farm payrolls. Boy were we off.
VIX IV Continues to Be Silly Cheap
Since the end of the congressional stand off, the VVIX (the vol of VIX) has done one thing: plummet.
VIX Rallying with the SPX = UGLY
When the SPX rallies and the VIX rallies at the same time it is almost always negative for the S&P 500
IV Spreads in VIX Are Odd
In the last few months we have watched the implied volatility of VIX options basically implode.
Is VIX Backwardation a One-off Event?
Is yesterday’s budget deal important? – apparently not to anyone except to the equity market. I think that it’s is likely a one off event, we might have a touch of follow through, but I highly doubt this is the beginning of the end.
Retail Investors are Getting Killed
I am a firm believer that the mini options are going to be a great thing for the retail trader long term, as long as the retail trader can steer clear of television.
VIX Points Toward More of The Same
I have been closely watching the VIX curve over the last month for signals that this rally could end in the near future.
A Tale of Two Risk Assets
The VIX settled below 14 again yesterday, selling off as the market rallied. This after it underperformed Wednesday on the sell-off that briefly sent the market lower than 1550.
SPX Sees Red but the VIX Sees What?
The market did not like any of the numbers yesterday. It did like FB and ZNGA but pretty much sold everything else.
What the Early Morning Activity in VIX Futures Told Us
Some depositors in Cyprus took a haircut yesterday morning on the bailout from the EU. When they think about, it after the dust settles, is that some money is better than no money.
Visual Proof of VXX Futility
One of the mistakes that sends many traders to our option mentoring is the trading of VXX. Shockingly there are traders that think this ETN should perform the way the VIX performs.