Is Shorting Volatility a Free Lunch?

Much has been written about the current low volatility environment and the possible reasons, from Central Bank intervention, to interconnectivity of global markets and more sophisticated hedging strategies.

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Big Bear Turns Bullish

The stock market continues to power to new highs with nary a pullback.

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Good as it Gets?

The stock market is nothing but bullish.

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It’s Make or Break Time for Banks

The financials sector, especially the large money center banks like JP Morgan (JPM) and Citigroup were among the strongest performers following the election with the SPDR Financial (XLE) rallying some 20% in the month after the election.

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Fool Me 4x

When word came down after the close yesterday the Securities Exchange Commission had approved the listing of two ETFs employing 4x leverage, the response ranged from applause, to concern, to ridicule, and of course the internet being what it is, ridicule.

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Options for Earnings Plays

The wave of quarterly earnings reports is hitting a peak with the busiest week of the season – no fewer than 990 companies, 97 of which are part of S&P 500, will be reporting over the next five days.

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Options for Earnings

The past few weeks has seen an increase in broad market volatility as missiles have flown and bombs have been dropped.

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Pairing AMD vs. NVDA

A paired position is typically constructed by going long a specific security and simultaneously shorting a related issue.

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Pinning the Market

Yesterday we looked into how the willingness of investors to sell option premium short VIX related products might lead to ‘People Set to get Burned by Volatility’, as those positions could act as dry kindling ready to burst into a flame of selling should the market start selling off.

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Are People Set to Get Burned by Volatility?

It’s been widely reported stock market volatility has been on the decline for the past few years, sinking to historic lows in the weeks following the election.

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What’s Tesla Worth?

How can Tesla, which makes a fraction of the number of cars, losing money on each one, be worth more than than Ford and nearly equal to General Motors?

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Volatility: Implied, Applied & Otherwise

We just came through one the quietest, least volatile period in stock in history in which the S&P 500 Index went 109 days without a 1% or more decline. This caused the VIX to sink down to the 11 level and the 30-day historical volatility to a minuscule 5.2% last week.

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