Tag: VIX
Options Trading: How To Read Unusual Activity
Using options trading activity as an indicator for impending price moves is difficult, subjective, and unreliable. That said, it can help confirm other indicators, and increase the probability of a profitable trade. Indeed, there have been many situations in which activity in the options pits accurately predicts or presages an impending price move. There are 2 […]
3 Exploding ETF Trends (And 33 Funds You Can Buy Now)
If you’re like most folks, you probably think it’s tough for any fund to beat the S&P 500, especially in a year when the index jumped some 15%. But you’d be wrong. Truth is a lot of funds are doing better, with over 660 beating the S&P 500. And the top-performers share 3 common themes that could […]
The Cheapest Trade With The Return Of Volatility
For investors, the summer doldrums are officially over. It’s not just the start of September signaling the end of the market’s slow period. There’s been a noticeable uptick in major news items – most of them not good. The biggest market moving news is coming out of North Korea, where the military supposedly detonated a […]
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 […]
Should You Be Trading VXX?
Should You Be Trading VXX? One of the primary themes I like to discuss on this site is volatility. After all, you shouldn’t be trading options if you don’t at least have a basic understanding of why volatility is important to the financial markets. So why is volatility important? In a nutshell, volatility is significant […]
What’s This Big VXX Trade Telling Us?
What’s This Big VXX Trade Telling Us? If you’re a regular reader of this site, you know I like to talk about VXX. VXX, or the iPath S&P 500 VIX Short-Term Futures ETN, is one of the most popular exchange-traded products out there. As I’ve mentioned before, the average volume for VXX over the last […]
Watch Out For September
Recently, I wrote an article discussing an interesting trade in iShares MSCI Emerging Markets (EEM) options. The trade was meaningful because it was a significant bet or hedge on the entire emerging markets asset class. This week, there’s once again been an intriguing trade worth discussing. This massive trade could have broader implications on the […]
New Volatility Products Mean Even More Ways For You To Make Money
With the way exchanges and investments companies are consistently rolling out new products, you could argue that this is the golden age of investing. For investors and traders, there are more choices than ever before when it comes to different types of investments. Back in the day, the average investor was fortunate to have access […]
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 […]
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, […]
