RECENT POSTS
FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our "Question of the Day" right now.
FULL SHOWSMissed an episode of Fast Money? Watch the lastest show here.
TRADE SCHOOLGrab a pencil because school is in session and the Fast Money traders are teaching class.
FAST MONEY PODCASTSDownload Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY PHOTOS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up and receive a recap email every Friday after the show!
FAST MONEY MOBILE ALERTSGet advanced information about the next Fast Money.
Text Size 
 |
The VIX [VIX
Loading...
()
], Wall Street's main barometer of investor fear dropped sharply on Tuesday as the Dow [.DJIA
Loading...
()
] rallied by triple digits.
The Chicago Board Options Exchange Volatility Index, commonly called the VIX has now contracted significantly after setting a record high of 89.53 in the turbulent month of October.
"The VIX is down because the market loves certainty and within 24 hours, we should know who our next president will be," said Joe Kinahan, chief derivatives strategist at Chicago-based online brokerage thinkorswim Group.
Fast Money’s resident options trader Pete Najarian agrees. But whether the current rally is based on an Obama victory or something else entirely, Najarian thinks the issue now is sustainability.
In other words, the Pit Boss suspects the next leg could be lower. “I have been taking off whatever has worked over the past week. Not necessarily shorting yet but looking,” he tells Dylan Ratigan on Closing Bell.
And if you’re interested in a short play, railroads might be a good place to start. “Burlington Northern [BNI
Loading...
()
] was just trading under $80 and now it’s north of $90. The P/E level could be infront of itself. Same with Union Pacific [UNP
Loading...
()
] and Norfolk Southern [NSC
Loading...
()
]”, Najarian says.
Another notable sign: During Tuesday's session, the cash VIX hit a level that was below the front-month November VIX futures contract on the CBOE futures exchange. In afternoon trade, November VIX futures stood at 46.49 after hitting a low of 43.80.
"That's the first time since early September that the premium has shunk to parity with the future. We had been up as much as 24 points over the future, so this is record shrinkage," says Pete’s brother Jon Najarian, on optionmonster.com
What's the bottom line? An Obama victory could mean less volatility for the stock market going forward.
- Halftime Report: Dubai - First Ripple Of Larger Crisis?
- Your First Move For Friday November 27th
- Web Extra: Private Equity, Conviction Buy?
- Pops & Drops: Abercrombie & Fitch, Nucor...
- Giving Thanks: Seymour
- Your Questions About... Alcoa & The Dollar
- Best Wishes Regis
- Gartman's Annual Rules For Trading
- Chartology: December Outlook
- Holiday Toy Trades
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
CNBC.com with wires
Data is a real-time snapshot *Data is delayed at least 15 minutes