Author: Jay Soloff

Protection Against a December Volatility Spike

Protection Against a December Volatility Spike

Stock market activity has essentially slowed to a crawl, and many traders are wondering if that’s it for volatility in 2019. Some traders are jokingly wondering if they should take the rest of the year off. It certainly seems like the market isn’t interested in action these days. There are certainly mechanical reasons for the […]

Trade of the Week: Unusual Options Activity in Consumer Staples

Trade of the Week: Unusual Options Activity in Consumer Staples

This week, the options trade of the week concerns the consumer staples sector. A trader took a large bearish position on the Consumers Staple Select Sector SPDR ETF (XLP). XLP covers the sort of goods consumers buy regardless of economic conditions like toothpaste and soda. It also includes the places where most people buy those goods like Walmart […]

Is Market Volatility Done For The Year?

Is Market Volatility Done For The Year?

2019 has certainly seen its share of ups and downs in the financial markets. There were quite a few spikes in market volatility this year – usually related to China trade war news or concerns over the direction of interest rates. There has also been a lot of talk about the US falling into a […]

The Latest Cold Front Is Heating Up Natural Gas Options

The Latest Cold Front Is Heating Up Natural Gas Options

It’s always funny to read about energy prices going up whenever there’s a cold front. It’s like people forget that there’s such thing as weather and (depending on where you live) it changes with the seasons. As the temperature starts cooling in the fall, you’ll often see headlines like “Heating Oil Prices Up on Colder […]

Trade of the Week: Unusual Options Activity in Twitter

Trade of the Week: Unusual Options Activity in Twitter

Even heavily traded options on stocks can show unusual activity, especially after earnings. For example, there was a lot of options activity in Twitter (TWTR), where the shares got hammered this week after a technical bug hurt ad revenue for the quarter. However, a majority of the options traded were calls, suggesting that investors may […]

Are We Headed Back To A Low Volatility Market?

Are We Headed Back To A Low Volatility Market?

Both 2018 and 2019 have been characterized by periods of choppy markets and higher volatility. It’s been quite the change of pace from 2017, where it seemed like we would never experience market volatility ever again. Of course, nearly everything in the financial markets moves in cycles. Low periods of volatility will inevitably be followed […]

Trade of the Week: Unusual Options Activity in MGM Resorts

Trade of the Week: Unusual Options Activity in MGM Resorts

MGM Resorts (MGM), the major casino operator, is seeing some unusual options volume ahead of its October 30th earnings. MGM normally trades about 11,000 options per day, but that number recently spiked to over 36,000. A big player looks to have rolled forward 4,500 calls which make money if MGM shares moves higher during earnings […]

Gold Prices Could Be Headed Much Higher

Gold Prices Could Be Headed Much Higher

Although the stock market has had its share of ups and downs over the last couple of months, the price of gold has been surprisingly stable. In August, the gold futures reached $1,500 an ounce. Fast forward to mid-October, and futures are still right around that $1,500 level. Why have gold prices remained elevated despite […]