Blogs

Post Election Markets: Not That Obvious
November 20, 2024

President-elect Trump has not yet been inaugurated, but investors are busy trying to determine which sectors will be most affected by his administration. So far, four sectors have emerged as the most likely candidates: defense, pharmaceuticals, energy, and crypto. Although ...

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Presidential Elections and the Market
October 30, 2024

The long-awaited presidential election is about a week away, and market pundits have been busy focusing on what the results may mean for the markets. Since presidential elections can bring widespread changes to economic policy, regulations, and spending, the consensus ...

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Beyond Yields: Exploring Dividend Growth and Risk Premiums with Options Data
October 24, 2024

With OptionMetrics’ new IvyDB Implied Dividend product, a lot of deep-rooted analysis can be conducted regarding future expectations of dividend payments. One area of particular interest in asset pricing and factor applications is comparing the option implied yield to the ...

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Futures: Not All Price Series Are the Same!
October 1, 2024

If you are trading futures, you should know something important. Continuous futures price series may vary between sources and cause misleading analysis. The culprit here is how the various contract months, each with a different price and expiration, are combined ...

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Verizon’s Dividend Paradox: The Premium Puzzle in Implied Yields
September 26, 2024

Verizon Communications (VZ) stands as a paragon of dividend reliability, boasting over two decades of consistent payouts and regular increases—a veritable magnet for income-focused investors.  The introduction of OptionMetrics’ IvyDB Implied Dividend offers insight into the options market's perception of ...

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How to Predict Dividend Cuts and Raises: The Options Market Approach
August 20, 2024

Lance 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, ...

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Commodities Told the Tale
August 13, 2024

The 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 ...

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Dividend Risk Premium: A Primer
July 31, 2024

How 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 ...

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Volmageddon Unveiled: How Massive Options Trades May Have Enabled Historic VIX Spike
July 1, 2024

By: 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 ...

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