Blogs
Post Election Markets: Not That Obvious
November 20, 2024President-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 ...
Read morePresidential Elections and the Market
October 30, 2024The 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 ...
Read moreBeyond Yields: Exploring Dividend Growth and Risk Premiums with Options Data
October 24, 2024With 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 ...
Read moreFutures: Not All Price Series Are the Same!
October 1, 2024If 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 ...
Read moreVerizon’s Dividend Paradox: The Premium Puzzle in Implied Yields
September 26, 2024Verizon 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 ...
Read moreHow 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 ...
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