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Eric Dutram: Thanks to growing worries over the euro zone and an employment problem in the U.S., many investors are growing skeptical about a broad recovery. Stocks have begun to reflect this pessimism as of late while many portfolio managers Read more…
Bill Luby: An emerging area of interest in the markets in general and in this space in particular is the subject of how to blend volatility exposure – both long and short – into a portfolio. Read more…
Jared Levy: My first lesson in the stock market had nothing to do with stocks at all. My mentor sat me down, looked me in the eye and said, “As long as you can understand human emotion and math, you’ll make a great option trader.” Read more…
Stoyan Bojinov: The evolution of the ETF industry has spawned more than a handful of instruments allowing investors of all walks unprecedented access to virtually every corner of the global market. Read more…
NYSE:TBAR, NYSE:TCHI, NYSE:TRND, NYSE:TRNM, NYSE:VSPR, NYSE:VSPY
Jim Fink: Because VIX calls are based on VIX futures instead of the more volatile “spot” VIX, in the past I suggested that it would be easier to hedge a portfolio against a “black swan” stock market decline using S&P 500 puts–either the cash-settled SPX index puts or the equity-settled SPY ETF puts. Read more…
NYSE:SPY, NYSE:TVIX, NYSE:TVIZ, NYSE:VQT, NYSE:VXX, NYSE:VXZ, NYSE:XVZ
Bill Luby: It was only a week ago that I discussed the performance of 31 VIX and volatility-based exchange-traded products in VIX ETP Returns for Q1 2012 and barely a month ago that I examined in some detail the workings of two VIX ETPs, VQT and XVZ, in Dynamic VIX ETPs as Long-Term Hedges. Read more…
NYSE:TVIX, NYSE:TVIZ, NYSE:VQT, NYSE:VXX, NYSE:VXZ, NYSE:XVZ
Bill Luby: Back in my consulting days, I convinced myself that there were rare instances when an ugly chart crammed full of data should take precedence over a clean and simple graphic that focused on the key takeaways. For my purposes at least, the graphic below, while unlikely to garner accolades from the likes of Read more…
NYSE:TVIX, NYSE:TVIZ, NYSE:UVXY, NYSE:VQT, NYSE:VXX, NYSE:XIV, NYSE:XVIX, NYSE:XVZ, NYSE:ZIV
Bill Luby: Raise your hand if you are anticipating a bearish reversal in stocks in the near future. Great. Lots of hands here… Now let’s be honest, how many were also expecting a reversal a week ago? a month ago? ever since the calendar turned to 2012? Read more…
NYSE:SPLV, NYSE:TVIX, NYSE:VQT, NYSE:VXX, NYSE:VXZ, NYSE:XVZ, PBP
Bill Luby: With the huge contango in the VIX futures term structure at the moment, anyone who is buying VIX options or the VIX exchange-traded products (ETPs) right now is having to pay for that contango in order to have the opportunity to capitalize on increasing volatility. With the Read more…
Andy Crowder: Many professional options traders don’t really care about options prices or volume. They only care about volatility. That’s because volatility is the single biggest factor for any given options contract. Read more…
NYSE:TVIX, NYSE:TVIZ, NYSE:VQT, NYSE:VXX, NYSE:VXZ, NYSE:XIV, NYSE:ZIV
David Gillie: The Volatility Index (VIX) is a measure of options activity on the S&P 500—frequently referred to as the “fear index” Read more…
NYSE:TVIX, NYSE:TVIZ, NYSE:VXX, NYSE:VXZ, NYSE:XIV, NYSE:ZIV
[The following first appeared in the December 2010 edition of Expiring Monthly: The Option Traders Journal. I thought I would share it partly because I have an article, “Synthetic Seasonal VIX-VXX Arb,” which appears in the just published January 2012 issue of Expiring Monthly that Read more…
NYSE:TVIX, NYSE:TVIZ, NYSE:VQT, NYSE:VXX, NYSE:VXZ, NYSE:XIV, NYSE:ZIV
The Chicago Board Options Exchange (CBOE) announced today that it will begin offering trading in options on the CBOE Emerging Markets ETF Volatility Index (VXEEM) on Tuesday, January 31. Read more…
Bill Luby: The more I think about it, the less I understand the need for even more low volatility ETPs. Sure, I understand that in high volatility markets many investors want a more conservative portfolio Read more…
NYSE:SPLV, NYSE:TVIX, NYSE:VQT, NYSE:VXX, NYSE:XIV, NYSE:ZIV
Bill Luby: Based on some of the questions and comments that came out of Wednesday’s Three New Risk Control ETFs from Direxion, there appears to be a significant portion of the investment community that is uncertain about just how some ETPs are attempting to dampen volatility and control risk. Read more…
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