VIX vs SPX Options Expiration Outlook with Price Magnets

Viking Analytics

It’s options expiration week.

Let’s look at Volatility Index (INDEXCBOE:VIX) and S&P 500 (INDEXCBOE:.INX).

This week, VIX Volatility options expire on Wednesday morning, the S&P 500 (SPX) options expire on Friday morning.

These events often are accompanied by volatility as the large traders exit or roll their positions in order to maximize profit and purge risk.

The SPX options market data suggests that large traders will maximize their profits if the SPX pulls back to the $2,750 level.

Moreover, the VIX options market data currently suggests that large traders will maximize their profits if the VIX settles near $14.50 on Wednesday morning.

stock options expiration july 20 spx vix opex price targets table

Here is the value of the SPX graphed together with the option market analytics that we calculate each morning. The value of SPX tends to mean-revert with the price level where the options market delta and gamma are near zero.

s&p 500 options expiration july 20 spx value vs opex positioning

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The authors may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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