Blogs
Mega Tech Crash Risk Outpaces Index
January 13, 2023One investing theme in 2022 was the failure of tail-risk hedges amid a grinding bear market. The performance of protective put strategies, an oft touted hedge to down markets, was suboptimal. As a baseline example, the CBOE 5% Put Protection ...
Read moreExamining Anomalies: Part 2 – High Year-End Expectations: Should You Count on a Santa Claus Rally?
December 22, 2022Industry research has empirically proven different types of calendar anomalies. Most scholars have a difficult time rationalizing these phenomena, and many even dismiss them. In this series, we look to elaborate on these anomalies in the equity market and extend ...
Read morePound Crash Risk and Upside in UK Equities
October 31, 2022The British Pound Sterling (GBP) has experienced historical levels of turmoil over the past month and traded at record lows compared to the dollar. The freefall in the GBP can be attributed to multiple macroeconomic shocks, including higher energy prices ...
Read moreInflation: Commodity Prices Unsupportive
September 28, 2022Last July, I wrote about inflation and one of its main drivers, commodity prices. I made the case then that although the Fed was aggressively moving to limit inflation through higher rates, commodity prices had been decreasing sharply since mid-June and ...
Read moreExamining Anomalies: Part 1 – What is the Best Day to Buy Stocks and Options?
September 8, 2022Industry research has empirically proven different types of calendar anomalies. Most scholars have a difficult time rationalizing these phenomena, and many even dismiss them. In this series, we look to elaborate on these anomalies in the equity market and extend ...
Read moreIV, Call Contracts & Gamma: BBBY Takes a Bath
August 24, 2022Meme stocks once again surged in popularity earlier this month. Their temporary comeback recently was led by Bed Bath & Beyond, a stock whose rise began with disclosure of a large position of call options by investor Ryan Cohen, of ...
Read moreDemand for Consumer Discretionary Stocks: Could They Signify a Market Bottom?
July 26, 2022The Consumer Discretionary SPDR Fund (XLY) is down around 30% YTD, the most by any sector this year. The XLY tends to underperform the market in times of economic downturn, as consumers cut excess spending into discretionary goods. Generally, when ...
Read moreInflation: Don’t Buy the High!
July 19, 2022Joseph Kennedy, the 35th President’s father, supposedly said right before the 1929 crash, “If shoeshine boys are giving stock tips, then it’s time to get out of the market.” Although most likely apocryphal, it does point out that we all ...
Read moreHave Recent Economic Events Deterred Retail Option Traders?
July 6, 2022Market volatility induced by macroeconomic factors has brought into question the resiliency of today’s retail option trader. The recent bear market has led to sustained losses for these traders across a variety of asset classes, likely reducing wealth along with ...
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