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VIX Ticks Higher – SPY Options Demonstrate Fearless Behavior
I want to thank all the subscribers that have signed up for the newsletter and trade alerts. All of the trades in Tuesday’s installment are working, and I hope you have taken advantage of the trade...
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Instead of posting here, I put up an article on Seeking Alpha today: http://seekingalpha.com/article/2226103-will-vix-expiration-bring-any-surprises
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Breaking Down Yesterday’s VIX Spike
Today saw four month highs in the VIX, the S&P 500 gauge of implied volatility. Generally, sudden demand for puts and an absence of put sellers generates swift spikes up in the VIX, and today’s...
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Economy Strengthens, Earnings Look Great and the VIX Surges – Why?
Pundits in the financial media are working overtime to explain a natural price action in equities. An old axiom by Jessie Livermore postulated that news follows price and that is what is happening...
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VIX Futures Make a Round Trip – Short Options Weaken
This was the day in the August future: After the Polish minister news was blamed for the 15 handle S&P dip in 30 minutes yesterday, the DAX opened sharply lower boosting the VIX futures at around...
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VIX Futures Make New Highs While Spot VIX Falls Short
Trends are the name of the game to algos and a lot of traders, and today’s action was almost methodical in adhering to the short-term bearish trend that has been in place for nearly two weeks. August...
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VIX Falls 10% – Futures Curve Steepens
There was no news of significance today, and European markets led the U.S. into a higher open. That open was almost precisely where we closed, and since the S&P 500 was up around 12 pts at the...
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VIX Plummets – Drags September Future Down To July Levels
In four trading days, the sentiment has gone from “the correction is finally here, the world is totally unstable”, to “the Fed can’t raise rates because the consumer is in trouble”. Is one of those...
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VIX Expiration Has Been Very Kind to SPX Longs
VIX options and futures expire the Wednesday before or after monthly equity and index option expiration (The third Friday of the month). Once every three or four months it happens on the Wednesday...
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VIX Expiration Nearing as NYMO shows 2nd Highest Level of the Year
VIX expiration is clearly playing by the book this month, and it certainly appears that 2 million calls will expire worthless. With markets trading on minuscule volume, a pin of 13 is looking almost...
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Creative Volatility Trading (Part 1) – Calendar Ratio Spreads
When most folks think about trading volatility, they immediately look to VIX, VXX, UVXY, SVXY and all the exchange traded notes and funds that are not only misunderstood, but that also on occasion blow...
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Summer Volatility – Will it Vanish?
The question traders are asking themselves right now is if it’s time to concede long vol trades for a while and pack it in, buy some XIV and call it a summer. (Damn, XIV is gone. Ok, SVXY then. Ugh,...
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