Blogs
Equities Get Caught in Vanna Hedging Wave
February 17, 2022In the final week of January 2022, the equity market experienced jaw-dropping intraday price whipsaws. On Monday, January 24, 2022, the S&P 500 saw a midday reversal of nearly 200 points, ending nearly flat to the open. What could have ...
Read moreARKK the Correlation Flood: Are Markets Mispricing ARKK Diversification?
January 28, 2022There has been lively debate surrounding the future of Cathie Wood’s ARK innovation fund (ARKK) actively managed portfolio. The discussion is centered around whether the valuations of the constituent stocks may be at least partially driven by ARK’s large ownership ...
Read moreRussian Roulette: Implied Volatility and the Russian/Ukraine Situation
January 24, 2022Ongoing and increasing tensions between Russia and Ukraine are having a direct effect on European energy prices and, potentially, the implied volatilities and prices of certain European and US stocks in the energy, defense, and agricultural sectors. Although not well ...
Read moreThe FOMC and Forward Volatility – Will Hopes of a Santa Claus Rally be Crushed?
December 12, 2021Jerome Powell and the Federal Open Market Committee (FOMC) are slated to meet on Dec 14th and Dec 15th for what could be the most consequential FOMC meeting this year. Earlier this month, Powell commented on accelerating bond-buying tapering, and ...
Read moreInflation Risks and Treasury Skews
November 19, 2021Inflation anxieties continue to remain at the top of bond investors’ minds. The Consumer Price Index (CPI) clocked a multiyear record of 6.2% on Nov 10, spurring a rise in yields. Bond yields increase and bond prices fall with rising ...
Read moreAAPL Earnings: Trading the Rumor with Volatility
October 22, 2021The third quarter earnings for Apple (AAPL) is on deck for next Thursday, October 28th, after market close. Earnings attract serious volume from options traders, since the news can incite massive reactions in the stock price. The expectations of an ...
Read moreMacroeconomic Risk Appears in Bitcoin
September 23, 2021Bitcoin has been heavily touted by its supporters as an inflation hedge. The logic behind this claim is that the number of Bitcoins is fixed, unlike with the U.S. money supply, which is subject to continued pumping by the Federal ...
Read moreBorrow Rate & GME: Where is This Meme Stock Today Given its Monstrous January Short Squeeze?
September 15, 2021Back in June, our blog post, Meme Stocks are Easy Shorts, reported on the gradual stabilization of borrow rates for the premier meme stock, GameStop (GME), and others since their historic surges in January. The surges in GME, BB (Blackberry), and ...
Read moreGold Volatility Skew and Monday’s Selloff
August 10, 2021Gold spot prices fell in early Asian trading sessions on August 9th to a four-month low of $1,688 – down more than 4% since Friday’s close. While the price has since recovered, stabilizing around $1730 or down 1.8% intraday, there ...
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