Monday Sector ETF Slumps

With last Monday’s large sell off, the hardest hit sectors in the S&P 500 were Energy, Financials and Consumer Discretionary.

Volatility Curve

Below is a current snapshot of the VIX futures. /VX and /VXM are the VIX and Micro-VIX futures respectively. /VX is $1000 per 1 move, whereas /VXM is $100 per 1 move. If you’d like to trade options on the VIX, use symbol VIX. It is $100 per 1 point move. Careful, don’t get short naked calls—not a good idea since it can “crash to the upside” and result in large losses.

Returns in Interest Rate Products

Yields declined along with equities yesterday. Current rates are pretty poor for savers (see below). Participating in lowly BBB Corporate Bonds for 30+ years to get close to 5%? No thank you!

Popular ETFs

The symbols with the highest levels of IV and IV Rank are China (FXI), Emerging Markets (EEM), Brazil (EWZ), Oil Production (XOP), Oil Services (OIH), Financials (XLF) and the Gold Miners (GDX and GDXJ).

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Cherry Picks is written in collaboration with Michael Rechenthin, PhD, Head of Research and Development at tastytrade; and James Blakeway, CEO of Quiet Foundation, a data science-driven subsidiary of tastytrade.