VIX Futures Term Structure: A Warning Sign?
Although the VIX is often cited as the market’s fear or anxiety gauge, the shape of its futures curve is often overlooked. The futures term ...
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Blogs
AAPL Earnings: Trading the Rumor with Volatility
October 22, 2021The third quarter earnings for Apple (AAPL) is on deck for next Thursday, October 28th, after market close. Earnings attract serious volume from options traders, since the news can incite massive reactions in the stock price. The expectations of an ...
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Macroeconomic Risk Appears in Bitcoin
September 23, 2021Bitcoin has been heavily touted by its supporters as an inflation hedge. The logic behind this claim is that the number of Bitcoins is fixed, unlike with the U.S. money supply, which is subject to continued pumping by the Federal ...
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Borrow Rate & GME: Where is This Meme Stock Today Given its Monstrous January Short Squeeze?
September 15, 2021Back in June, our blog post, Meme Stocks are Easy Shorts, reported on the gradual stabilization of borrow rates for the premier meme stock, GameStop (GME), and others since their historic surges in January. The surges in GME, BB (Blackberry), and ...
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Gold Volatility Skew and Monday’s Selloff
August 10, 2021Gold spot prices fell in early Asian trading sessions on August 9th to a four-month low of $1,688 – down more than 4% since Friday’s close. While the price has since recovered, stabilizing around $1730 or down 1.8% intraday, there ...
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Meme Stocks are Easy Shorts
June 11, 2021Meme stocks are truly a phenomenon to behold. At their inception, many of these stocks—such as GameStop and Blackberry—were purchased by organized retail traders across social media platforms that had high short interest, which in turn created a squeeze that ...
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TVOL, Inflation, and Tech Stocks with High Volatility in June
June 3, 2021With inflation reaching above 4% recently, from rates of 2.6% about a year ago, anxieties regarding longer term inflation have entered the spotlight. The Fed’s easy-money policies and government stimulus spending had juiced growth and momentum into an epic bull ...
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Treasury Volatility and Growth Stocks at Risk
March 5, 2021After last week’s substantial move in yields, anxieties regarding longer term inflation have entered the spotlight. The Fed’s easy-money policies and government stimulus spending have juiced growth and momentum into an epic bull run over the last year. However, these ...
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TSLA Gamma Exposure and the Vol Snare
January 26, 2021Upcoming Tesla (TSLA) earnings announcements tend to get investors going. With TSLA stock frequently a source of investor disagreement, company news can violently push prices around. One source of this volatility is gamma positioning, or market maker inventory of short-dated ...
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No Drama Expected From Netflix Earnings
January 19, 2021Investors often look at volatility to adjust for the market and the underlying stock exposure in advance of stock earning announcements. However, firm-specific volatility (or the implied volatility that quantifies risks unique to the firm) can be a better indicator ...
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