Blogs

TVOL, Inflation, and Tech Stocks with High Volatility in June
June 3, 2021

With inflation reaching above 4% recently, from rates of 2.6% about a year ago, anxieties regarding longer term inflation have entered the spotlight. The Fed’s easy-money policies and government stimulus spending had juiced growth and momentum into an epic bull ...

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Treasury Volatility and Growth Stocks at Risk
March 5, 2021

After last week’s substantial move in yields, anxieties regarding longer term inflation have entered the spotlight. The Fed’s easy-money policies and government stimulus spending have juiced growth and momentum into an epic bull run over the last year. However, these ...

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TSLA Gamma Exposure and the Vol Snare
January 26, 2021

Upcoming Tesla (TSLA) earnings announcements tend to get investors going. With TSLA stock frequently a source of investor disagreement, company news can violently push prices around. One source of this volatility is gamma positioning, or market maker inventory of short-dated ...

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No Drama Expected From Netflix Earnings
January 19, 2021

Investors often look at volatility to adjust for the market and the underlying stock exposure in advance of stock earning announcements. However, firm-specific volatility (or the implied volatility that quantifies risks unique to the firm) can be a better indicator ...

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Is Exxon Stock in for a Dividend Cut? What Options Data Is Suggesting
October 28, 2020

Exxon Mobil Corp (NYSE:XOM) is set to declare its quarterly dividend on October 29, and while historically Exxon has been top-tier dividend paying stock, there is growing speculation the Texas-based giant will cut its current 87 cent quarterly dividend. The ...

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Election Volatility: Insights Across Markets
October 23, 2020

The volatility complex has clearly priced the 2020 Presidential Election as a major risk event. Speculation on contested elections, a blue senate flip, and another stimulus agreement have made hedging November volatility a pricey endeavor. This is captured by the ...

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The Put/Call Demand Ratio: Surpassing P/C Volume
August 24, 2020

With the rapid growth of the options market, the Simple Put/Call Ratio has become a staple technical indicator. Simply dividing total put volume by total call volume allegedly provides miraculous insights into investor sentiment, or so it goes. But, the ...

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Wells Fargo: Sizing Up the Implied Dividend Cut
July 8, 2020

On June 25th, the Federal Reserve released results of its 2020 stress test for banks. New guidelines were published forcing banks to halt buybacks and reduce dividend payouts. As a result, Wells Fargo (WFC) will have to cut its dividend, ...

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Extraordinary Times for the Variance Risk Premium
June 9, 2020

The S&P 500 has clawed back nearly all its losses since hitting its COVID-19 induced low late March. This remarkable rally of over 40% is historical considering it also ranks as one of the best 50-day runs of all time. ...

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