QuantumLogicTrading
Short

CBOE EQUITY OPTION VOLUME: 40% HIGHER FRIDAY & 1SD ABOVE 3M AVRG

USI:OVLCE   OPTION TOTAL VOLUME - CBOE EQUITIES
3 months ago
CBOE Equity Option Volume:

1. Total Equities Option volume now trades above all moving averages and is currently 1 deviation above the 3 month and 1 month average - we moved 40% higher on Friday post yellens hawkish Jackson Hole Speech, from 1700000 to 2500000.

- Though we remain about 40-50% below the "risk-off" shift levels that we usually see in a firm bear market (Brexit and Yuan deval/ Feb sell off levels trade at 3700000)

2. This is important as increasing equity options is highly correlated with risk-off markets (as investors increasingly turn to derivs to hedge their long cash exposure) - watching closely for another 40% move higher, which is easily possible given Fridays move as this will likely signal the start of the september sell-off that I have been expecting.

3. Short SPX             is my view on any rallies into 2180 this week - looking to double my position here.

Questions, Comments and Likes encouraged!!
3 months ago
Comment: Update:

1. Option Volume unable to hold up, inline with VIX trading lower and forward IV pulling back also.

- May have to wait for Friday again (jobs report) to trigger the full risk-off shift.
Great posts - Thanks for sharing!
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QuantumLogicTrading AleksanderThor
3 months ago
My Pleasure! Dont forget to follow and like for more updates!
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