The VIX closed at 17.03 today, below both its 10-day moving average of 17.51 and its 200-day moving average of 22.52. Meanwhile, the S&P 500 index closed at 4124.07, slightly above its 10-day moving average of 4122.53 and its 200-day moving average of 3974.61. Let's take a closer look at the VIX options data to analyze the market sentiment.
Call Option Analysis
Total call volume today was 1,027,760 contracts, with 147,729 contracts traded at the bid or below and 182,505 contracts traded at the ask or above. The remaining 697,526 contracts were traded between the market spread. Among these call options, the majority of the contracts traded for 0-20 delta calls (564,023 contracts) and 21-40 delta calls (337,861 contracts). This suggests that investors are optimistic about the market in the short term.
Put Option Analysis
Total put volume today was 512,360 contracts, with 119,439 contracts traded at the bid or below and 47,514 contracts traded at the ask or above. The remaining 345,407 contracts were traded between the market spread. Among these put options, the majority of the contracts traded for 81-100 delta puts (367,298 contracts). This suggests that investors are still somewhat cautious about the market in the long term.
Short Term Market Direction
The IV percentile, which measures the current IV level relative to the highest and lowest IV levels over the past year, closed at 52% today, up from yesterday's close of 45%. Today's implied volatility is 100.55%, significantly higher than yesterday's implied volatility of 72.1. The put to call ratio closed at 0.49 today, up from yesterday's close of 0.34. These factors suggest that investors are feeling slightly more cautious in the short term.
Long Term Market Direction
While investors seem optimistic in the short term, the majority of put options traded today were for 81-100 delta puts, indicating some long-term caution. It is important to keep in mind that the VIX is still trading below its 200-day moving average, indicating a relatively calm market. However, investors should remain cautious and keep an eye on the VIX and S&P 500 indexes.
Conclusion
In conclusion, the VIX option data analysis suggests that investors are optimistic about the market in the short term, but still cautious in the long term. Investors should keep an eye on the VIX and S&P 500 indexes and consider their own risk tolerance when making investment decisions. (Read more on "How to secure your family's financial future ")
Glossary
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Disclaimer
The information provided in this article is for educational purposes only and does not constitute financial or legal advice. Please consult with a financial advisor or attorney before making any investment decisions or creating an estate plan.
The information provided in this financial blog is for educational purposes only and does not constitute financial advice. Please note that the views and opinions expressed in this blog are solely those of the author and do not necessarily reflect the official policy or position of his firm. The content of this blog is based on the opinions of the author and should not be relied upon as a substitute for professional advice. Before making any financial decisions, readers should consult with a financial advisor or other professional to discuss their specific situation and investment objectives. The author of this blog is not responsible for any losses, damages, or other liabilities incurred as a result of using or relying on any information provided in this blog. All information provided in this blog is accurate and reliable to the best of the author's knowledge, but no representations or warranties are made regarding its accuracy, completeness, or timeliness. The author reserves the right to change or update the information provided in this blog at any time without notice.
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