Andrew Giovinazzi's blog
We had another day of near all-time highs with banks again leading the charge higher. I think the IV is getting too cheap but that will be a story for the next blog. I think the interesting story is coming out of Turkey. Is it the real story or the non-story that is taking shape on the coup attempt for a NATO member? The ETF that tracks the Turkish (TUR) market was down around 6% today.
It seems since the August Flash Crash this is the cheapest volatility has gotten since before that time. When I look at a vol chart it seems there is this year and last year. When I look at BAC it is no exception. There was last year’s IV and this year’s IV and now we have very low IV going into earnings. I read this as the market expects little out of this earnings cycle. Except someone forgot to tell the equity markets as they have raced to new highs.