High Volatility

Is It Time To Sell Volatility Again?

Is It Time To Sell Volatility Again?

One of the most popular trading strategies of the last couple years is the short volatility trade – up until February of this year, the strategy could almost do no wrong. With dividends and fixed income not producing enough yield for many income investors, short volatility was used to fill the void. And it worked […]

A lot of cash US dollars.

Big Money Is Betting On A Big Move In Financials

I always find it fascinating to see what kind of big trades are being made in the options markets.  Some of the smartest strategists in the world use options markets as their playground, so generally speaking, you can assume a lot of research went into these blockbuster type trades. It’s also interesting to guess what […]

How You Could Make 650% On This Copper Trade

How You Could Make 650% On This Copper Trade

The only thing certain when it comes to trading in 2018 is that this year has been far less predictable than previous years. While the last few years were marked by low volatility and a mostly bullish stock market, it’s obvious that 2018 is an entirely different animal. So far, 2018 has been characterized by […]

Big Money Is Betting That The Markets Will Remain Calm

Big Money Is Betting That The Markets Will Remain Calm

The days of sub-10 VIX may be gone for the foreseeable future, but that doesn’t mean traders have stopped betting against higher volatility. In fact, the short volatility trade seems like it may be returning with a vengeance. Well, let me step back a bit. The short volatility trade may be returning on the professional […]

Is This Trade Really Going To Earn 24,900% Returns?

Is This Trade Really Going To Earn 24,900% Returns?

After over a year of basically no volatility in the stock market, we had something of a volatility revelation which began on February 5th. The selloff that day and the subsequent implosion of certain volatility products (like XIV) created a major jump in market volatility. As you can see from the chart, iPath S&P 500 […]

Make 220% on This Popular Volatility Fund

Make 220% on This Popular Volatility Fund

Market volatility is like a zombie.  You keep thinking its dead, but it keeps coming back to life and shambling onward.  It’s been about 10 weeks since the February 5th selloff but high market volatility refuses to die. As you can see from the chart below, the iPath S&P 500 VIX Short-Term Futures ETN (NYSE: […]