Category: Options Volatility Watch

The Right Options Trade To Place For Low Volatility

| June 14, 2017 | 0 Comments
The Right Options Trade To Place For Low Volatility

Looking through an options chain trying to find the right contract and the right date can be overwhelming. One bad decision and you could lose big money. Let us simplify that for you today by showing you set-by-step how to place the right trade for today’s market.  Finally, I have some exciting stock market news […]

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The Cheap Way To Profit From Record Low Volatility

| May 17, 2017 | 0 Comments
The Cheap Way To Profit From Record Low Volatility

Conflict in Syria, worries about Russia and North Korea, and an unpredictable government at home could send the stock market tumbling at any moment. Here’s how to profit from a temporary market dip. Stock market volatility continues to confound traders and investors as the VIX and other major volatility trackers close in on all-time lows.  […]

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The Market “Insurance” Trade That Profits From A Crash

| May 10, 2017 | 0 Comments
The Market “Insurance” Trade That Profits From A Crash

Worrying about what will happen if the market crashes will never accomplish anything, but most investors never plan to profit if the market takes a dive. Place the trade shared in this article that acts as “insurance” against a market sell-off.  From a volatility standpoint, the stock market has been incredibly boring lately.  It’s almost […]

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Do Buyers Of Options Benefit From High Volatility?

| April 19, 2017 | 0 Comments
Do Buyers Of Options Benefit From High Volatility?

Search “options and volatility” in Google and you’ll get a dozen websites that say the same thing: option buyers want high volatility and option sellers want low volatility. Oddly enough, this old and relied upon rule of thumb isn’t completely correct. In reality, as an option trade plays out, trend has a far more powerful […]

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Be Prepared For Increased Volatility

| April 7, 2017 | 0 Comments
Be Prepared For Increased Volatility

Co-CIO Francis Gannon explains what increasing volatility could mean for investors, and how it could benefit active managers. One of the more interesting aspects of the market I think investors have to recognize going forward is that we are going to see an increase in the volatility of volatility going forward. In the past, we have […]

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3 Proven Options Trades To Profit From Market Volatility

| January 13, 2017 | 0 Comments
3 Proven Options Trades To Profit From Market Volatility

Make volatility put cash in your brokerage account during 2017 by using these three simplified options trades. With a new President in office this year, investors should expect another bumpy ride for the stock market.  Generally speaking, the arrival of a new calendar year shouldn’t have much of an impact on the performance of the […]

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Income Investors Should Learn To Love Volatility

| November 16, 2016 | 0 Comments
Income Investors Should Learn To Love Volatility

Years from now, we may recall 2016 as the year when political risk became a constant presence hovering over the investment landscape. But fear not: there are ways for investors who rely on fickle global credit markets for income to turn the turbulence to their advantage. Investors have always had to account for some degree […]

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A Comprehensive Guide On Making Profitable Investments In Times Of Economic Uncertainty And Increased Volatility

| October 26, 2016 | 0 Comments
A Comprehensive Guide On Making Profitable Investments In Times Of Economic Uncertainty And Increased Volatility

Introduction There are probably a thousand and one laws on investing (possibly more) with a view to guiding you on how to make profitable investments. Interestingly, the multiplicity of those investment laws could make them confusing. More so, following all of the laws doesn’t guarantee profitable investments. However, the summation of all the laws of […]

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Realized Volatility Profiles: Futures

| April 8, 2016 | 0 Comments
Realized Volatility Profiles: Futures

Today I will introduce an aspect of volatility that you most likely have not seen being addressed anywhere else: realized volatility profiles. First up let’s make sure you all understand what realized volatility (RV) is and how it compares to implied volatility (IV). Simply RV measures the amount and amplitude of price change observed in […]

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Big Time VIX Trades Could Mean Volatility Is About To Decrease

| September 11, 2015 | 0 Comments
Big Time VIX Trades Could Mean Volatility Is About To Decrease

Big Time VIX Trades Could Mean Volatility Is About To Decrease The VIX continues to generate plenty of financial news as it remains elevated above normal levels.  Volatility has started to settle in recent days, but don’t expect a complete capitulation until after the next Fed meeting. As a reminder, the VIX (S&P 500 Volatility […]

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Major VIX Action Suggests Volatility Is Going To Decline

| September 4, 2015 | 0 Comments
Major VIX Action Suggests Volatility Is Going To Decline

Major VIX Action Suggests Volatility Is Going To Decline The VIX has been front and center in the financial news lately with all the volatility that’s hit the market the past couple weeks.  The collapse of the Chinese economy is spooking investors and adding a sizeable level of uncertainty to US financial markets. As a […]

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Why Is The VIX So High?

| August 28, 2015 | 0 Comments
Why Is The VIX So High?

Why Is The VIX So High? Unless you’ve had no contact with civilization over the past week, you’re likely aware that the stock market has gone through something of a correction.  Moreover, volatility has been through the roof.  In fact, the VIX reached its highest level since 2011. As a brief reminder, the VIX (S&P […]

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Big Time VIX Action Suggests A Mostly Calm August

| August 5, 2015 | 0 Comments
Big Time VIX Action Suggests A Mostly Calm August

Big Time VIX Action Suggests A Mostly Calm August The VIX (S&P 500 Volatility Index) is a measure of implied volatility levels on S&P 500 options.  As many of you know, the VIX is often considered the market’s fear gauge.  Overall market volatility is most commonly tracked by watching the VIX. For those who are […]

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Does Recent VIX Action Suggest A Market Meltdown Is Coming?

| July 31, 2015 | 0 Comments
Does Recent VIX Action Suggest A Market Meltdown Is Coming?

Does Recent VIX Action Suggest A Market Meltdown Is Coming? Savvy investors know that VIX options are always worth keeping an eye on.  It’s where the smart money tends to execute important trading strategies and portfolio hedges.  Some of the biggest trades you’ll ever see happen in the VIX options pit. Of course, the VIX […]

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New Weekly VIX Options Are Great For Volatility Traders

| July 24, 2015 | 0 Comments
New Weekly VIX Options Are Great For Volatility Traders

New Weekly VIX Options Are Great For Volatility Traders As volatility becomes a more popular metric for investors to watch, so does trading volatility products.  The VIX itself is tradable through futures and options.  VIX options are heavily traded by large institutions as an alternative to S&P 500 options. As a reminder, the VIX (S&P […]

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A Large VIX Call Trade Suggests No Panic Is Necessary

| July 10, 2015 | 0 Comments
A Large VIX Call Trade Suggests No Panic Is Necessary

A Large VIX Call Trade Suggests No Panic Is Necessary Over the past couple weeks, we’re finally getting to see why the VIX is often called the ‘fear gauge’ for investors.  There hasn’t been a lot to be concerned about this year until recently, so the VIX has been mostly running at low levels. Lately […]

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Is This Large VIX Trade Signaling An End To Investor Fear?

| June 26, 2015 | 0 Comments
Is This Large VIX Trade Signaling An End To Investor Fear?

Is This Large VIX Trade Signaling An End To Investor Fear? There’s a reason the VIX is often called the investor ‘fear gauge’.  The benchmark volatility index is often the first place to see when investors start increasing the hedges on their portfolio. Of course, hedges tend to increase along with investor concern over a […]

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Does This Giant VIX Trade Imply A Market Correction Is Coming?

| June 19, 2015 | 0 Comments
Does This Giant VIX Trade Imply A Market Correction Is Coming?

Does This Giant VIX Trade Imply A Market Correction Is Coming? Savvy investors know that VIX options are always worth keeping an eye on.  It’s where the smart money tends to execute important trading strategies and portfolio hedges.  Some of the biggest trades you’ll ever see happen in the VIX options pit. Of course, the […]

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This Gigantic VIX Trade Could Be A Big Deal

| June 5, 2015 | 0 Comments
This Gigantic VIX Trade Could Be A Big Deal

This Gigantic VIX Trade Could Be A Big Deal With the summer doldrums kicking in for the US financial markets, it’s normal to expect volatility to be low for the next several weeks.  Of course, you never know what may happen.  But, the summer is typically a slower period for financial news. The financial media […]

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This Large VIX Trade Isn’t What We’re Used To Seeing

| May 22, 2015 | 0 Comments
This Large VIX Trade Isn’t What We’re Used To Seeing

This Large VIX Trade Isn’t What We’re Used To Seeing VIX options are always worth keeping an eye on.  That’s where the smart money tends to execute important trading strategies and portfolio hedges.  Some of the biggest trades you’ll ever see happen in the VIX options pit. Of course, the VIX (S&P 500 Volatility Index) […]

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This Massive VIX Trade Is Betting On Higher Volatility This Summer

| May 13, 2015 | 0 Comments
This Massive VIX Trade Is Betting On Higher Volatility This Summer

This Massive VIX Trade Is Betting On Higher Volatility This Summer The VIX (S&P 500 Volatility Index) is a measure of implied volatility levels on S&P 500 options.  As you probably know by now if you’re interested in options trading, overall market volatility is most commonly tracked by watching the VIX. VIX is popular because […]

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These VIX Trades Signals Higher Volatility Is On The Way

| May 8, 2015 | 0 Comments
These VIX Trades Signals Higher Volatility Is On The Way

These VIX Trades Signal Higher Volatility Is On The Way As you probably know if you read my articles on a regular basis, overall market volatility is most commonly tracked by watching the VIX.  The VIX (S&P 500 Volatility Index) is a measure of implied volatility levels on S&P 500 options. VIX is popular because […]

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This VIX Trade Suggests Higher Volatility Could Be Just Ahead

| April 29, 2015 | 0 Comments
This VIX Trade Suggests Higher Volatility Could Be Just Ahead

This VIX Trade Suggests Higher Volatility Could Be Just Ahead Trading volatility – or volatility products – has become extremely widespread.  It’s true for options traders of course.  But, even those traders who never touch options may still trade (or at least follow) volatility levels. As you know, overall market volatility is most commonly tracked […]

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Another Interesting, Giant VIX Trade Happened

| April 24, 2015 | 0 Comments
Another Interesting, Giant VIX Trade Happened

Another Interesting, Giant VIX Trade Happened As an options trader, you should always have a general idea of what’s going on with volatility.  You don’t necessarily have to master the concept.  But, the more you know about the topic, the better off you tend to be. As you know, overall market volatility is most commonly […]

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This Unusual VIX Trade Is Worth A Second Look

| April 17, 2015 | 0 Comments
This Unusual VIX Trade Is Worth A Second Look

This Unusual VIX Trade Is Worth A Second Look As I like to regularly point out, as an option trader, you should always be keeping an eye on what the VIX is doing.  Even if you’re not a volatility trader, the VIX should give you an idea of how cheap or expensive options are on […]

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What’s This VXX Trade Telling Us?

| April 6, 2015 | 0 Comments
What’s This VXX Trade Telling Us?

What’s This VXX Trade Telling Us? There are good reasons why trading iPath S&P 500 VIX Short-Term Futures ETN $VXX is extremely popular.  With an average volume of nearly 50 million shares a day, both retail and institutional traders must be active in this ETN. As a quick refresher, VXX is a way to get […]

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Is This UVXY Trade As Important As It Seems?

| March 25, 2015 | 0 Comments
Is This UVXY Trade As Important As It Seems?

Is This UVXY Trade As Important As It Seems? As regular readers know, volatility levels can give us an idea of overall investor concern.  Is there fear of a selloff or market instability?  Volatility is the best gauge we have of uneasiness. Of course, overall market volatility is most commonly followed by watching the VIX.  […]

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How Is The VIX Reacting To The Fed Meeting?

| March 20, 2015 | 0 Comments
How Is The VIX Reacting To The Fed Meeting?

How Is The VIX Reacting To The Fed Meeting? As an options trader, you can’t understate the importance of volatility.  You don’t necessarily have to master the concept to be a good options trader. But, the more you know about the topic, the better off you tend to be. As you know, overall market volatility […]

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This VIX Trade Could Be A Big Deal

| March 13, 2015 | 0 Comments
This VIX Trade Could Be A Big Deal

This VIX Trade Could Be A Big Deal As an options trader, you can’t understate the importance of volatility.  It’s one of the primary ingredients in the price of an options contract.  Perhaps more importantly, volatility levels can give us an idea of investor concern. Is there fear of a selloff?  Volatility is the best […]

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Trading VXX Can Be Very Profitable

| March 6, 2015 | 1 Comment
Trading VXX Can Be Very Profitable

Trading VXX Can Be Very Profitable There are good reasons why trading iPath S&P 500 VIX Short-Term Futures ETN (VXX) is extremely popular.  With an average volume of nearly 50 million shares a day, both retail and institutional traders must be active in this ETN. As a quick refresher, VXX is a way to get […]

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VIX Isn’t The Only Way To Measure Volatility

| February 27, 2015 | 0 Comments
VIX Isn’t The Only Way To Measure Volatility

VIX Isn’t The Only Way To Measure Volatility Volatility is one of my favorite subjects to write about.  Regular readers know I like to talk a lot about the VIX and option volatility.  As an options trader, you can’t understate the importance of volatility. Of course, overall market volatility is most commonly followed by watching […]

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Is This VIX Trade As Important As It Seems?

| February 11, 2015 | 0 Comments
Is This VIX Trade As Important As It Seems?

Is This VIX Trade As Important As It Seems? Regular readers know I like to talk a lot about the VIX and option volatility. As an options trader, you can’t understate the importance of volatility. It’s one of the primary ingredients in the price of an options contract. Perhaps more importantly, volatility levels can give […]

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What’s The Deal With This Massive VIX Trade?

| January 26, 2015 | 0 Comments
What’s The Deal With This Massive VIX Trade?

The biggest VIX trade you may ever see occurred recently. What’s it telling us?

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What’s This Big VXX Trade Telling Us?

| January 16, 2015 | 0 Comments
What’s This Big VXX Trade Telling Us?

A large VXX options trade suggests volatility could be capped by the end of next month.

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What’s With The Huge Options Trade In VXX?

| January 7, 2015 | 0 Comments
What’s With The Huge Options Trade In VXX?

A huge VXX options trade suggests volatility could be headed back down by next month.

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What’s Up With Volatility?

| December 12, 2014 | 0 Comments
What’s Up With Volatility?

With just a couple weeks to go before the end of 2014, volatility has returned to the financial markets. We couldn’t quite make it through the rest of the year without one more bout of investor fear. The VIX has climbed above 20 for only the third time this year. And while that’s not a […]

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What Selloff?

| October 31, 2014 | 0 Comments
What Selloff?

The bull market returns with a vengeance! The S&P 500 – which was briefly flat for the year in mid-October – is back up to roughly 9% gains year-to-date. Should we be surprised? Well, the volatility certainly dried up in a hurry. But, that’s how volatility tends to work (which is why so many people […]

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Volatility Has Arrived

| October 17, 2014 | 0 Comments
Volatility Has Arrived

The financial markets have been swamped with volatility in recent days, but it should come as little surprise to those of you who visit this site regularly. After all, we’ve been talking about volatility for the past several weeks. Granted, I didn’t – and still don’t – believe the markets are going to experience a […]

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How Scared Are You?

| October 10, 2014 | 0 Comments
How Scared Are You?

October is Halloween month, so it seems like everywhere you go you see spooky decorations and references to all that is scary. It’s fitting then, investors appear to be really spooked by the markets these days. Volatility has crept back into the stock market in full force. This week, the major indices have been hit […]

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Protecting Your Portfolio With Options: What’s The Best Way?

| October 3, 2014 | 0 Comments
Protecting Your Portfolio With Options:  What’s The Best Way?

Just a few weeks ago, the S&P 500 was up nearly 10% for the year.  Today, the benchmark index is up just about 6.5%, and investor concern is becoming more widespread. When investors start worrying about a selloff, they often go to cash. But in many cases, it only makes the selloff worse.  Not to […]

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Is A Selloff Coming?

| September 26, 2014 | 0 Comments
Is A Selloff Coming?

After this week’s relatively steep selloff in equities, investors are becoming concerned a larger pullback is in the works. After all, it’s only natural when the selling starts to assume more is on the way. But what are the options markets telling us? Keep in mind, the smart money often likes to use options rather […]

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VXX Stock – Everything You Need To Know (Part 1)

| August 29, 2014 | 0 Comments
VXX Stock – Everything You Need To Know (Part 1)

With the explosion in popularity of volatility products, both for options traders and investors in general, it’s a good idea to have a solid understanding of what’s out there. As you may realize, the single most important volatility benchmark is the VIX (CBOE’s S&P 500 volatility index). However, the VIX itself isn’t tradable. That’s where […]

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Why Is Volatility Important?

| August 26, 2013 | 0 Comments
Why Is Volatility Important?

If you spend any time studying options, you’ll consistently come across the concept of volatility.  Actually, volatility has become a widely followed market indicator.  So, it’s not just an obscure options topic anymore. In fact, it’s very normal to see quotes on the CBOE Volatility Index (VIX) flashed across the major financial news networks.  The […]

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This New Index Is Worth Keeping An Eye On

| June 3, 2013 | 0 Comments
This New Index Is Worth Keeping An Eye On

What once was just an obscure variable for options traders, volatility is now a mainstream financial topic, followed by all types of investors.  If you’ve spent any time watching CNBC or reading the financials news, you’ve undoubtedly seen or heard discussions of market volatility. In fact, the most popular method of trading volatility, the VIX, […]

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Options Volatility Watch: What’s Going On With The VIX?

| April 1, 2013 | 0 Comments
Options Volatility Watch:  What’s Going On With The VIX?

If you’re an active investor – or even if you just follow the markets – it pays to know what the VIX is doing.  That holds true whether or not you trade options.  The VIX is an important indicator for all types of investors. First off, what’s the VIX? The CBOE S&P 500 Volatility Index, […]

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