Happy holidays! Not a lot of news today, but one thing mattered—the S&P 500 made a new all-time high. We pushed above the double top I mentioned yesterday, and if we get confirmation on Friday, the Santa Claus Rally looks like it’s officially in play.
Volatility is very low right now, with historical volatility under 9% and the VIX sitting near 13.5. A big part of that is the holiday schedule. Markets are closed on Christmas Day, then reopen on the 26th, with normal hours into the end of the year. Dealers are already taking days out of the pricing models, which makes options look cheaper and pushes the VIX lower. That doesn’t mean opportunity disappears. In fact, for premium sellers, this kind of environment can still offer some attractive setups. Enjoy the holiday, and I’ll see you Friday.
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