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 [...]
The market is deciding what to do today after making the big volatility crushing run to SPX 1885.52 yesterday. I can give it a day of rest even for a hyper active bull. The momentum drivers are a little slower today, so that might be part of it. Lackluster employment data, of which there seems [...]
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).
In the last 3 days, the market has rallied about 30.00 dollars in the SPX. Knowing that, traders would expect the VIX to have gotten completely pasted as traders dumped volatility. Take a look at how S&P has moved and how VIX has moved. Livevol (R) www.livevol.com When the S&P moves up, one of the [...]