The index continues to trade in a narrow range. From a previous review
... "Options traders do not look for high index prices and sell calls and buy puts when the price approaches 4,200."...
... "The 4,100 level is a trigger for rising volatility, and in Friday's session, volatility sellers successfully defended this level...".
Nothing has changed since then. We have big gamma strikes of 4200 and 4000. A likely scenario would be a price approach to one of the strings before expiration.
The VIX, meanwhile, has declined with the SPX sideways movement.
... "Options traders have large put positions below current values, so I do not expect the VIX to rise."...
But it's worth noting that there have been purchases of VXX in the dark pools over the past few days and increased interest in 30-strike VIX calls. Traders are hedging their positions against a possible decline.
The index may start to move out of the range in the coming days, and the driver could well be the CPI.
... "Options traders do not look for high index prices and sell calls and buy puts when the price approaches 4,200."...
... "The 4,100 level is a trigger for rising volatility, and in Friday's session, volatility sellers successfully defended this level...".
Nothing has changed since then. We have big gamma strikes of 4200 and 4000. A likely scenario would be a price approach to one of the strings before expiration.
The VIX, meanwhile, has declined with the SPX sideways movement.
... "Options traders have large put positions below current values, so I do not expect the VIX to rise."...
But it's worth noting that there have been purchases of VXX in the dark pools over the past few days and increased interest in 30-strike VIX calls. Traders are hedging their positions against a possible decline.
The index may start to move out of the range in the coming days, and the driver could well be the CPI.
