Will VIX Implosion Create Buying Opportunity For Implied Volatility?

The markets could be setting up to see a VIX Volatility Index decline that should present buying opportunities for implied volatility by the end of the week.

We’ve seen lots of churning in volatility markets lately right near lows seen since the VIX bottomed on April 14th.

That said, the wave structure suggests a “final” move down could be likely in June which undercuts the mid-April lows of 15.38. This would help to complete the pattern from the mid-May highs, and present a fantastic opportunity to buy implied volatility for a 2-4 month hold.

I will be watching the VIX Volatility Index carefully this week on further index gains. If the S&P 500 does what the recent pattern suggests might be possible and climbs over early May highs, we’d likely see a rush to sell implied volatility at a time when i feel buying dips presents a compelling opportunity.

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Author has positions in 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.

Edit to article (June 9 at 11:05 am CST): Corrected twitter handle and author contact information.