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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The Growth of the Canadian Derivatives Market
June 2, 2023

The Canadian options market has seen tremendous growth over the past decade, with both open interest and trading volume increasing substantially. In this article, we’ll take a closer look at the growth of the Canadian options market, using two charts ...

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Regional Banking Sector Jitters: PACW Volatility Surges, Highlighting Risk and Amplifying Short Squeeze Potential
May 22, 2023

Regional bank stocks have experienced a significant decline in response to a series of recent failures, which has understandably raised concerns about the industry’s stability. This downward trend has been further fueled by substantial short selling pressures. Consequently, contagion fears ...

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Commodities on the Defensive
May 5, 2023

Since commodities are essential industrial inputs, they are sometimes used as an indicator to gauge future economic conditions. Although not as widely reported as developments in the equity and fixed income markets, recent price action in certain commodity markets may ...

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Agricultural Futures: Not As Predicted
May 2, 2023

In the early days of the war in Ukraine, commodities in the energy and agriculture sectors displayed the most significant shocks. This was not surprising: Ukraine is a major global supplier of wheat, corn, soybeans, and barley, with an estimated ...

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SVB Failure and Market Stability: Examining the Response of Bond Spreads to Treasury Volatility
April 3, 2023

The uncertain outlook for inflation and Fed policy has caused Treasury yields to fluctuate significantly in 2023. The Fed’s tightening has exposed weaknesses in the banking sector, as evidenced by the failure of Silicon Valley Bank (SVB), which has resulted ...

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SVB: Commodity Side Effects
March 29, 2023

The recent spikes in implied volatility due to the fallout from SVB were not just confined to equity and fixed income. Less reported on and less appreciated, commodities were affected as well. Although their movements in price and implied volatility ...

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