Blogs
How to Predict Dividend Cuts and Raises: The Options Market Approach
August 20, 2024Lance Zhao, OptionMetrics Garrett DeSimone, PhD, OptionMetrics Introduction Dividends are crucial in stock investment, providing regular income and indicating a company’s financial health. Our event study on dividend announcements shows that stocks with increased dividends generally yield higher returns, ...
Read moreCommodities Told the Tale
August 13, 2024The recent sharp declines in the equity markets, marking the most significant flight to safety since the 2020 pandemic, likely came as no surprise to any investor following commodity markets. Since mid-2022, commodity prices have been in a sideways to ...
Read moreDividend Risk Premium: A Primer
July 31, 2024How do investors price dividend uncertainty, known as the dividend risk premium, into equities and ETFs? This is something that can now be more easily and accurately assessed using OptionMetrics’ new IvyDB Implied Dividend. Implied dividends are risk-neutral dividends derived ...
Read moreVolmageddon Unveiled: How Massive Options Trades May Have Enabled Historic VIX Spike
July 1, 2024By: Garrett DeSimone, PhD & Oscar Shih Intro and background After 25 years in business, OptionMetrics has experienced many different markets and various volatility regimes. In recognition, we look back at the single biggest daily increase of the VIX, commonly ...
Read moreNegative Futures Prices: A Failure of Imagination
June 28, 2024OptionMetrics is now 25 years old! In celebration of the event, I was asked to comment on which market-related event most influenced me since the company's founding in 1999. 25 years is a long time, and most of the significant ...
Read moreCommodities: Disparate Trends
May 28, 2024Short term commodity price developments are in disagreement with longer term market-based forecasts. Although this is often the case, as markets are buffeted by short term events that aren't necessarily related to long term factors, the current disparity seems glaringly ...
Read moreAnother GME Rally: Diagnosing the Boom and Bust
May 21, 2024Last week’s random meme stock resurgence put another wet blanket on the efficient market hypothesis. The catalyst for this latest run was a Sunday night tweet from one of the original characters of the OG meme stock craze of '21, ...
Read moreCrude Oil: Implied Volatility and Geopolitical Events
April 23, 2024The most recent geopolitical events in the Middle East have thrust crude oil back into the news. As of April 15, front month Brent crude was up almost 17% year-to-date. If the situation worsens, and the region slips into a ...
Read moreDynamic Covered Calls on Magnificent 7 Stocks
April 17, 2024Garrett DeSimone, PhD, Head of Quant Research, OptionMetrics Jeff Corrado, Director of Operations, Volos Portfolio Solutions A covered call is a fundamental options strategy, employed by a wide range of investors, from retail investors, to those in embedded ETFs, pension ...
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