Blogs
Negative 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 ...
Read moreCan Options Data Tell Us Anything About Bubbles?
March 11, 2024Reminiscent of the dot.com mania of the late 90's, investors are naturally asking whether stocks associated with artificial intelligence, specifically Nvidia, are in the midst of a financial bubble. Since the exact definition of a bubble is as varied as ...
Read moreCommodities: Not So Fast!
February 21, 2024Things seem to be looking up for the US economy. GDP growth is good, inflation is moderating, and interest rates are on the decline. Despite these favorable indicators, commodities are telling a different story. Broadly speaking, commodities, as measured by ...
Read moreTSLA – Less Risky Amid Significant Pessimism?
February 12, 2024Tesla (TSLA) stock has already experienced a significant decline in 2024, reaching new lows not seen since May 2023 and earning the title of the “worst-performing S&P 500 stock of the year” by some. TSLA’s steep drop has been accompanied ...
Read moreThe January Barometer: Fact, Fiction, or Both?
January 11, 2024The start of the year always brings predictions of what the new year will bring. Among the most popular Wall Street auguries is the so-called “January Barometer," or the belief that the market's investment performance in January is indicative of ...
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