If you are an investor in the stock market, you should care, and this is why. A volatility shock occurs when there is a sudden and drastic change in the CBOE Market Volatility Index (VIX). On February 5th, 2018 a volatility shock occurred and $1.837 Billion was lost in trading with just one asset according to Bloomberg and on top of … Read More
How Low Volatility relates to the Inverted Yield Curve and finding the best options trades using ODDS Online.
It only takes seconds to find the best Weekly options trades using ODDS Online.
Learn to use a strategy called Conversion Reversal to arbitrage out-of-balance options for a 100% Risk-Free trade.
In this video, you will see ODDS Online’s powerful options scanning tools as we use them to find straddle trading opportunities.
You can use ODDS Online to analyse any option strategy, but in this video, I will show you how to quickly find a trade using the most popular options strategy on the planet, the Covered Call.
Interesting article at Alpha Architect about two research papers pertaining to volatility. The first has to do with idiosyncratic volatility (“IV”), and how higher IV leads to short-sale contraints, which leads to overvaluation, and subsequent bigger declines. Research that I performed last year confirmed that stocks with the biggest short sale contraints fell the hardest. By looking for stocks with the … Read More
We all know that volatility picked up in a big way when Trump tweeted that fateful Sunday morning. And although the increase was large, it was nowhere near a record by any measure. But what about the volatility of volatility itself? Did volatility start to fluctuate more than normal? Now remember, implied volatility is the expectation of what volatility is … Read More
A recent Bloomberg article confirms the fragile condition of the market. Don’s recent post talked about how algorithmic trading is causing a lack of liquidity that contributes to volatility spikes. This article confirms that the volatility spikes are occurring without the simultaneous spikes in stock volume that you might usually expect. The author, Rachel Evans, highlights the negative correlation between … Read More
OK, these two articles are so relevant I took bits of both headlines and put them together. Now I try to make sure that articles I link to are not behind a paywall. But sometimes, the articles are so compelling, I have to let you know about them anyway. And hopefully, you can find a way to read them. The … Read More