Fari Hamzei

Fari Hamzei

Fari Hamzei is frequently quoted by CNBC, Bloomberg and RealMoney. His book, Master Traders: Strategies for Superior Returns from Today’s Top Traders, published by John Wiley & Sons in October 2006, has already become a bestseller on Amazon trading books space. On January 29th, 2007, Timer Digest ranked Fari tied for Third place for the past Three Years in its "Timer of the Year Competition." On June 24th, 2013 (Issue # 567), Fari was ranked 3rd in the Nation among approximately 150 market timers in the last 12 months, and on 8/23/13 he was RANKED # 1 for the previous 3 months and #3 for the past 6-months. Once a year, Fari teaches Proprietary Sentiment Indicators at The Options Institute of CBOE. Fari is a graduate of Princeton University with a BSE degree in financial engineering, and was a director of strategic planning at Northrop Grumman Corporation's Aircraft Group and served for eleven years on the Board of Directors of Electronic Clearing House (ECHO), now an Intuit company (INTU).

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Opportunity in Volatility – Trading VXX

As traders and students of the markets, we are obligated to adapt to changes in market conditions and recognize opportunities when they present themselves in order to profit. With recent changes in the market place, there has been an influx of tools that are introduced to the speculators and investors alike by financial institutions in [...]

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Fed Taper, Quad Witching, OP-EX & Summer Solstice – Your Charts & Risk Capital

Today, the Options Volume and Premiums Paid for VIX, 10yr T-Notes and 30yr T-Bonds were in stratosphere.  As seen below, almost every expiry which showed a significance % volume of total volume, is BEARISH. Notice the drop in Put/Call Ratios of the lead VIX contracts that started around 1130am CT  – now take a look [...]

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Bearish VIX Put/Call Ratio

VIX Put / Call Ratio data is very bearish across multiple expirys. More importantly, as you can see here, March & April expirys, where the Contracts-volume and Premiums-paid were concentrated, remain bearish throughout the afternoon while markets registered over 9 handles on SPX.

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2013 Forecast for S&P-500 Cash Index

Having traded S&P-500 Futures on a daily basis since Q2 1993, one can get a sense of when our markets are happy as a clam. The economy is improving at the margin and the tendency of stock market indices to rise often after a moderate pull back, or in contrast; when almost everything goes wrong [...]

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How Will the Google Incident Affect Markets Moving Forward?

On Thursday, October 18, 2012, Google (GOOG) was scheduled to announce its quarterly EPS numbers after the market close.  However, the news was leaked prematurely during regular trading session, almost four hours ahead of schedule. Within seconds, GOOG was down as much as 10% before it was halted. The GOOG event shows the risk of [...]

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Misreading the VIX

Recently many people have been talking about how often investors have entered the market when the VIX was below 16 only to lose money by buying at the market tops. The assumption that a VIX below 16 is highly correlated to a market top is not always accurate. To fully grasp this concept, one must [...]

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Volatility Arbitrage

For option traders it is vital to know how implied volatility (IV) affects the price of an option. Many times traders get frustrated about losing in a position when they were directionally correct about the expected move. The price of an option is derived from several inputs into a robust pricing model such as Black-Scholes. [...]

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Following the Big Players Using Dollar Weighted VIX Put Call Ratio

We would like to welcome Fari Hamzei as a new contributor to the CBOE Community. Fari Hamzei has been a guest lecturer at The Options Institute at CBOE, and is frequently quoted by CNBC, Bloomberg, Fox Business and RealMoney. His book, Master Traders: Strategies for Superior Returns from Today’s Top Traders, published by John Wiley [...]