Thursday, December 27, 2012

S&P Setting Up for a Big Move (SPY; VXX)

I'm thinking upward but who knows?
And much as I hate straddles this might be a spot.

From Option Pit:
I said on Fox Business News today that I thougth we were setting up for a big one day move.  I said this because the conditions that existed the last time we blogged about SPX.  
The Spread between SPX HV and VIX is absolutly insane:
Livevol (r)
I would polint out that the last time the spread got this insane, the VIX went UP, not down....MORE