VIX - VIX Future SPIKE and Change in Sentiment around Option Expirations

Here we have our old friend the VIX Future Spread which showed a 2 yr EXtreme las week...


The following 2 Charts show how the Sentiment Bias into an OPEX (Option Ex.) effects the Price action. We use the position of the Call/Put ratio of Equity options to the its 89d Moving Average to assess that with good results.

The bias was faily positive (green above blue line) into this Jan OPEX which gave us the late Santa and New Year rally. Look how coincidentally the Bias changed yesterday right around the time when most options expired or got rolled.....