Hello Traders,
VIX is finally working its way up and that is good news for 0DTE trades. This means that the expected move on the SPX is going to be higher. Which gives us better premiums and bigger swings through the day. And while this means different things to different people and strategies. We like it because it allows those who pick specific days to trade in order to utilize their 3 PTD trades to close and scrape for profit if they wish.
As Wall Street’s major market averages experienced a sell off on Friday, volatility levels spiked to their highest levels of the year. The S&P VIX Index (VIX) traded at 18.62 in mid-afternoon action after topping 19 earlier in the session.
On Friday afternoon, the VIX was up 22.3% on the day. This jump took the volatility index to its highest level since Oct. 31, 2023. The index is now up about 58% from its 52-week low of $11.81 reached in December.
The rise in market volatility has come along with a drop in the major equity averages, which sent the tech-focused Nasdaq Composite lower by 1.6% on Friday. At the same time, the benchmark S&P 500 and the blue-chip Dow Jones were also lower on the session by 1.4% and 1.2%, respectively.
https://seekingalpha.com/news/4089334-volatility-jumps-to-the-highest-level-of-2024-with-the-vix-tagging-192
Published by James
Meet James Smith, a seasoned Computer Engineer hailing from the South, whose career trajectory is both unique and diverse. Over the past decade, James has cultivated extensive experience while traversing the globe, lending his expertise to Mega Yachts and Research vessels. His contributions encompass a spectrum of high-level technical services in the realm of electrical and computer engineering while sailing in remote locales worldwide.
Initially strongly disinterested in the intricacies of the stock market, James's perspective underwent a significant shift upon encountering Terry. This encounter sparked a newfound curiosity, propelling him into a journey of education and exploration within the realm of options trading. This venture seamlessly aligns with James's aspiration for continuous travel, as he now engages in trading activities across the globe, leveraging readily available internet everywhere.
Eager to impart his insights and acquired wisdom, James is enthusiastic about empowering others to realize their aspirations for freedom and success.
View all posts by James
