As anticipated, volatility readings flirted with historical lows on Monday, presumably bound even lower. Traders who have been itching for ‘something’ to happen right away shouldn’t get their hopes too high. However, we are not clueless about when the stock market’s wafting tedium might end. For details that could prove useful for speculation, including some very precise Hidden Pivot benchmarks, check out my latest updates in VXX, AMZN and AAPL.
If We’re Going to Speculate…
- June 6, 2017, 8:39 am
06052017 date:
50,000 of the VIX 21-strike calls expiring in May were apparently purchased at a price of 49 cents. These options will expire worthless unless the VIX skyrockets 82 percent in a bit more than a month and a half, and will lose money unless the VIX closes above 21.49 on expiration (the VIX closed Thursday trading a bit below 12).
Below is the VIX history before the major 05222015 top in the stock market:
On 05/11/2015 the VIX option market made a 100 million July strike 23 call ‘buy’ in less than 1 minute for 360,000 lots (chart inserted). A few weeks ago on 04/10/2015 a “large transaction sale” on YM/SP/INDU at the Asia open about –200 ym/Indu points in a minute, suggesting that large players are no longer concern about hiding what they are doing. A major market sale, at the Asia market opening about +/- 7:00 PM EST USA time, push the JYP market upward during the process.