Nations Indexes Midday Market Update. With a confused S&P 500 option market...
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Nations Indexes - Better Ideas Better Indexes
5.6K posts
Nations Indexes - Better Ideas Better Indexes
@Nations_Indexes
Real-time volatility analytics for traders. See what VIX hides and Deconstruct Skew®. Generate trade ideas and better trade structures. https://t.co/J7ySBdlH3e
Chicago, Illinois Katılım Ağustos 2019
54 Takip Edilen3.3K Takipçiler
This is why you can't trust VIX which is unchanged despite S&P being down 30 points.
But most of the option skew is showing higher prices. Only deep OTM puts and OTM calls are lower. That is info that is lost in VIX.
Deconstruct Skew to understand what options are saying.
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Interesting that @Cboe started tracking this years after we did!
And now there are 6 of the 10 largest names in the S&P showing call skew.
Lance Roberts@LanceRoberts
Call-skew inversion—out-of-the-money calls trading at higher implied volatilities than at-the-money calls—is surging among the top 100 stocks, signaling extremely bullish positioning.
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@VolatilityWiz Problem with VIX methodology is that it uses every OTM option, puts and calls, so it's impossible to know what puts are doing.
You have to Deconstruct Skew to understand what markets are really saying.
Nations Indexes does that so you can trade with data, not a hunch.
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NVDA VolDex before earnings...
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Still below the long-term average of 3.74.
RiskDex measures the ratio of OTM put prices to OTM call prices and is a great measure of skew and fear vs. greed.
Learn more about RiskDex here: nationsindexes.com/indexes/riskde…
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Still a relative bargain...
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Still pretty optimistic...
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Start the trading week with unique insights so you can trade better, see opportunities others miss, and make more money.
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It's very rare to be talking about TailDex in the context of fixed income.
But it looks like traders are now really worried about downside for bond prices.
@OJRenick
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Back to 5 of the 10 largest names in the S&P showing call skew.
That is VERY optimistic.
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The S&P 500 hit an all-time high on Thursday.
Option traders weren't celebrating.
Every vol measure except CallDex rose this week - a signal that hedgers are at work. So what's next?
This week's Volatility Insights:
nationsindexes.com/volatility/rat…
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Options are telling you what to expect...if you're willing to listen.
This week's Volatility Insights:
nationsindexes.com/volatility/rat…
English
The S&P 500 hit an all-time high on Thursday.
Option traders weren't celebrating.
Every vol measure except CallDex rose this week - a signal that hedgers are at work. So what's next?
This week's Volatility Insights:
nationsindexes.com/volatility/rat…
English
Up today but still well below the long-term average.
Learn more about RiskDex here: nationsindexes.com/indexes/riskde…
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Back to 5 of these names showing call skew...
That's really optimistic for the path for the next 30 days.
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Stocks swoon as rates spike and options are sending a clear signal. Today's Nations Indexes Midday Market Update power by SpiderRock Data and Analytics.
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Get our Volatility Insights delivered directly to your inbox each weekend.
Start the trading week with unique insights so you can trade better, see opportunities others miss, and make more money.
nationsindexes.com/insights/
English