Stocks and Options Are Sending Different Signals. How to Play It. – Barron’s

The stock and options markets are singing different tunes.

Index trading patterns in the options market indicate it isn’t ready to concede that the worst is over for stocks, even though the Cboe Volatility Index, or VIX, has fallen from bearish levels to a range that suggests enthusiasm for equities.

The stock market, meanwhile, is behaving…