The soybean/corn ratio peaked in late August, but has since retraced back toward its historical average, thus creating a tidy profit for pairs traders that pounced on this opportunity in late summer
In 2017, a mysterious trader appeared in the VIX options market betting millions on a huge spike in market volatility, and as of February 2023 it appears that trader is back
Investors and traders looking to exploit the surge in market volatility might consider the options market, with a strategic emphasis on mean reversion.
Day traders shoot for frequent gains in multiple positions across a spectrum of asset classes by utilizing strategies revolving around scalping, news, trends, mean reversion and money flows
Crude oil prices corrected by about 20% in November, and that has opened up fresh opportunities to trade volatility (and direction) in the energy sector.
Due to dissipating volatility in the financial markets, investors and traders may need to adjust their playbooks for the remainder of 2021—as evidenced by the recent drop in the CBOE Volatility Index (VIX).
When trading options, investors and traders have a plethora of data at their disposal to assist with trade analysis, including Implied Volatility Rank and Implied Volatility Percentile.
A “volatility crush” can materialize in the wake of a company’s earnings, or after a particularly chaotic period of trading in the stock market.
The overarching pricing relationship that exists between calls, puts, the underlying and the strike price. Options trading has exploded during the last 12 months, and for good reason. Options add flexibility to a portfolio, whether it be for the purpose of hedging, speculating or managing risk. However, it’s important to recognize that options differ from … Continued
The mean-reverting nature of volatility makes it a great candidate for a portfolio, especially compared to directional bets, which typically constitute a 50-50 proposition. Hindsight illustrates that since the market bottomed in March 2020, picking market direction has been a lot easier than usual. Based on the performance of broad-market indexes, such as the Nasdaq … Continued