Looking at the market rip up on the surprising housing news and the old highs are in the rearview mirror as stocks race ahead. Alex Jacobson, who I co-moderate the Options Block with on the Options Insider Radio Network, made a nice call last week watching the Dow transports make new highs and thinking the […]
One too many mediocre earnings reports sent stocks swooning, coupled with a “tough love” shout by one of the Fed bigwigs. The simple reason is that stocks have run and the reasons to keep buying them are less compelling. The big slowdown from the winter deep freeze keeps showing up in company earnings as many […]
Somewhere, as the market kicks around the all-time highs, the tech stocks are recovering from the shellacking they took. I don’t know if NFLX will see $400 this year or TSLA $255. We do have volatility in the large indexes scraping the bottom of the barrel so the big tech selloff has subsided for now. […]
It looked real ugly this morning toward noon. From what I could tell there was enough decent news to push stocks higher pre-open and then the flood gates of selling opened, hitting the momentum stocks particularly hard. The on again/off again saga of the Russians camping out in the Ukraine is putting the market into […]
(Editors Note: Title is from a Bill Murray SNL skit. Nice reference from Andrew Giovinazzi). So the Friday 4/4 rout in volatility did not materialize. Stocks dutifully opened higher with VIX marking lower, and then everything went the other way. Today the big premiums we saw in VIX futures got chewed up as VIX […]
While the market waited for NFP numbers to come out on Friday, the Fed declared the subzero temperatures was a drag on the economy. Unless you were selling de-icer or coffee during February, they were probably right. A little milestone kicked in today, in case you were not watching; FB closed at an all-time record […]
Normally, when the VIX begins to enter a new level, the Futures don’t ‘buy’ into the move. This causes the VIX to either be overly backward for periods of time, at levels the VIX would not be backward in, or alternatively, to have an extra steep contango when IV is clearly dropping. We saw something […]
Every so often, typically a few weeks after AAPL earnings, traders go a little overboard in selling AAPL option premium. Well, it’s been a few weeks since AAPL earnings, and traders have sold AAPL IV (Implied Volatility) down to stupid cheap levels…again. Take a look at a chart of VXAPL (the VIX of AAPL).