strangle

A Tale of Two Vols

Yet we have another all-time high close for SPX with the outlook for equities very bright indeed.  Not so much on the fixed income side which had a massive correction in the last two weeks.  The story is in the IV and here they tell two different things.  The volatility for volatility as measured by the UVXY is near 1 year lows.  That is right with equities clocking in highs vol of vol is in the basement.  This is how it should be.

 

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The market is on Quaaludes

Look for our daily calendar webinar soon!  Sep 24th is the day.

As I look at the underwhelming iPhone launch, and my phone, I keep thinking there is an app for everything.  There is an app for tides, sports, music and just about anything under the sun.  My problem is a I need an app to tell me what to do in a market on Quaaludes; lots of delusion and nothing going anywhere.  As there is an app for anything, there are positions for every market condition, even markets punch drunk with Fed indecsion and sound bites.

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Is the OPK squeeze healthy?

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The FOMC released their statement today and the June raise is looking unlikely.  2016 will probably be the year when interest rates get back to normal but for now all stocks could do was muster a .10% move in the big indexes either way.  We are starting to tilt toward good news is good news again but the sub normal rates and stocks are showing the indecision today with VIX trading 2015 lows.

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SPX Options Overly Discount Scottish Results

I agree with the consus and believe that in the end, the Scotts will do the right thing and vote to stay in the UK.  That being said, I think the market might have discounted that result a little too much.  Take a look at the SPX strangle that expires on the opening print tomorrow:

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LivevolX (R) www.livevol.com

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As Vol Drops VXN-VIX Spread Holds

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As vol rallied earlier this week, it was noted by a few people that the spread between SPX vol, the VIX and NDX vol, the VXN is at its widest point in years.  One might think that with the NDX calming down and VIX moving back to the sub 14 level that the spread would have tightened significantly...it has not.  Take a look:

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Market can't get past it's worries

Stocks sniffed all-time highs again and pulled back from the brink.  The simple answer is there is no reason to be running at all-time highs.  That was enough to push stocks back off of their shiny new plateau.  Since we are a volatility shop, let’s look at the underlying currents.  The first stop is SDEX, it's still at nosebleed levels.

Charts by google finance

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