Blogs
Beyond 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 moreIs Winning the Gold Medal in the Race to Hosting the Olympics Worth It?
August 3, 2024With more than 200 countries and an estimated 10,000 athletes in action to competing, Paris is in full swing hosting the ancient old competition of the Olympics. Historically, the preparation for the Summer Olympic Games has brought both positive and ...
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 moreThe Economic Implications of France’s Snap Election
July 5, 2024As the dust settles on the first major European Election of the week, attention now turns to the results of the second– France’s Parliamentary Election. On June 9, Macron sent shockwaves throughout Europe and the global economy, as he announced ...
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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