The VIX: Upside Potential?
November 8, 2023

Given the significantly increased tensions due to the war in the Middle East and its unexpected nature, the reaction of the VIX has been muted, to say the least. In the two weeks following the unexpected outbreak of war in ...

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Unveiling the Rise of 0-DTE Options: Analyzing SPY Trading Behavior on FOMC Meeting Day
October 12, 2023

The popularity of 0-day to expiration (0-DTE) options among investors has surged since their introduction in 2022. Given the relatively recent emergence of 0-DTE options, research into their intraday behavior is still in its early stages. In this post, we ...

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The New Situation in the Middle East and Crude Oil
October 9, 2023

Before the unexpected outbreak of hostilities in the Mideast over the weekend, it looked like the rally in crude was finally running out of steam. Unfortunately, crude is now part of the "fear trade" nexus, along with gold, the VIX, ...

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The VIX Isn’t Broken!
September 5, 2023

Over the last few months, there has been a steady chorus of traders and social media commentators claiming that the VIX is somehow “broken,” i.e., the index no longer responds adequately or sufficiently to economic crises, market movement, or sentiment. ...

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Implied Correlations: On the Rise from All-Time Lows?
August 30, 2023

Correlations play a pivotal yet sometimes overlooked role in predicting future market volatility. The correlation between stocks within a portfolio reflects their tendency to move in tandem. Stocks that exhibit strong positive correlation indicate a lack of diversification, subsequently amplifying ...

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The Ukraine War: Are Grain Shortages Imminent?
July 31, 2023

The war in Ukraine continues with no clear winner in site. Last month’s attempted coup in Russia served to intensify both sides’ determination to gain an advantage, whether through pressure on the battlefield or through other, indirect means. For Russia, ...

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Teaching an Old Ratio New Tricks
July 20, 2023

The Put/Call (PC) ratio is a very common indicator that traders use to measure investor sentiment. Given their highly publicized use in trading strategies, using put/calls as a signal to generate excess returns can be near impossible. In today’s market, ...

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The Russian Coup and Commodities
July 3, 2023

Although it’s hard to tell by reading only the financial news, there was a mutiny last weekend in Russia. This was one of the biggest international news stories so far this year; Russia (the Soviet Union) hasn’t had a coup ...

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Nvidia: Emerging as a Risky Megacap Outlier
June 14, 2023

The AI-fueled rally has propelled Nvidia to extraordinary gains this year. Among the large megacap tech stocks, which have collectively contributed to the resurgent S&P 500, Nvidia stands out as the sector leader, boasting a staggering 160% year-to-date gain. However, ...

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