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  • Angela Merkel keeps her options open with China
    Global Markets will try to shake of rough week
    Stock markets around the world endured one of the most volatile weeks all year, as it seemed no county was immune to bleak economic news. In fact the only good news maybe that despite global uncertainty, the price of a barrel of oil has plummeted,...
  • Investment risks
    Fighting the investment risks that overshadow rewards
    One major aspect to risk is how long you intend to hold an investment. For example, if it is trading at a low price, the probability of permanently losing your capital in Coca Cola stock over a 15 year period is extremely low. On the other hand,...
  • CHICAGO, IL - DECEMBER 12: Traders signal offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) following the Federal Open Market Committee meeting on December 12, 2012 in Chicago, Illinois.
    Chicago PRMIA volatility products for risk management event
    Chicago PRMIA (Professional Risk Management International Association) Presents:Volatility Products for Risk ManagementJoin Chicago PRMIA for an evening of discussion with experts on volatility products. From research to product application...
  • Decreasing Volatility in EURUSD
    Decreasing Volatility in the Forex Market
    You may have noticed that 2014 hasn't been a particularly volatile year in the forex market so far. I personally have noticed it while day trading. The majors are moving well under 100 pips per day, and while there are volatile days, on...
  • Traders take orders in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) on October 16, 2013 in Chicago, Illinois. The major stock indices reacted favorably today as it appeared a deal that would end the govern
    Development and promise of the VIX on the 10th anniversary
    Chicago QWAFAFEW Presents:Development and promise of volatility products on their 10th AnniversaryA panel discussion featuring four experts will survey the development and promise of volatility products. The panelists will include volatility...
  • Option Basics: Debit vs. Credit spread
    Option Basics: Debit vs. Credit spread
    Debit and Credit spreads are called Vertical Spreads. It's a common strategy and the building block for other more complex strategies when trading options.A Debit spread occurs when you buy one option and concurrently sell another option with...
  • Impact of FOMC on S&P500
    Option Basics: Impact of FOMC on the Markets
    I had a recent discussion with another trader who expressed his surprise over the market reaction (the S&P500) to the announcement of tapering on December 18th. We both expected the market would react negatively; instead it reacted with a...
  • AP Twitter hack roils financial markets
    AP Twitter hack roils financial markets
    The world keeps turning and has become quite unpredictable. Check that, it has always been unpredictable, the realization of one’s inability to predict what will happen comes with age.On one hand, money supply measures around the globe are...
  • Is a Major Move in the SPX Upon Us?
    Is a Major Move in the SPX Upon Us?
    Traders there are two very strange things going on in the option world right now.1.The HV IV spread is insanely insane. With SPX IV trading at nearly 3X, realized volatility the market is pricing in options for a VERY big relative move in the near...
  • GVZ All Time Low Again,  GLD Trade Developing
    GVZ All Time Low Again, GLD Trade Developing
    Our COO was on Bloomberg TV today talking about the Gold and the low GVZ in the gold options. If you missed it you can catch it here:Gold has spent the last few weeks bouncing between its 200 and 50 day moving averages (See Photo 1):The precious...
  • October 9th Dow Jones Collapse
    The death of "Buy and Hold"
    During the past several years, interest rates on savings and fixed income securities have been at record lows and the stock market has frequently gotten rocked (August 2011 is a great example) by news reports related to the world’s...
  • What a Hedged Market Looks Like
    What a Hedged Market Looks Like
    There is no sell off on the horizon for this market, as it is a fully hedged market place right now. Some newer traders wonder, what does a fully hedged market look like? It looks like this:Take a look at realized volatility on 10 and 20 day...
  • Oil IV is Too Cheap
    Oil IV is Too Cheap
    When looking at the market today, OVX and its sister CVF have both had a bit of a rally. At first it seemed options were getting expensive in WTI and in USO. However, with a closer look at the actual vols that is not the case. For starters, USO IV...
  • FXE November Volatility Is Cheap
    FXE November Volatility Is Cheap
    I will be honest, I do not spend a lot of time dealing in currency options. For starters, the futures options do not have that much liquidity. This is because most of the volume is traded over the counter. The FXE currency pays a weird dividend...
  • VIX pointing Toward A Breakout
    VIX pointing Toward A Breakout
    While in this market it seems reasonable to be a bit of a bull, there is something lining up that should keep most in cash or less short vol over the next few days. The SPX has done NOHTING over the last few weeks. Realized volatility is in the...