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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Tail Risk in the Energy Sector
May 4, 2020

The energy sector has been hammered in the combined wake of OPEC’s failed output deal and plummeting demand for oil as a result of Covid-19. Oil futures have gone negative, to establish a whacky super contango precedent. This crash in ...

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Gamma Traps and Dealer Imbalances
April 22, 2020

The market has seen some wild moves over the last month, which has drawn parallels only to the price action at the onset of the Great Depression. Several pundits are willing to blithely attribute this environment to some form of ...

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