With traders out on vacations, the months following May usually see significant drops in trading volume. This creates a self-fulfilling prophecy of selling in May followed by months of low volume (and sometimes low volatility) trading, which is why it’s Implied volatility is the most important concept and tool in options trading. It gives you a simple metric to determine how expensive or how cheap an option is relative to other similar options. To grasp the concept of implied volatility, it helps to start Because you can see, the present degree of volatility which you’re buying within the long legs of the calendar is fairly elevated on a historical basis. NFLX stock was mired in a narrow trading range in the critical $98 level in the last several weeks. (Bloomberg) -- If you try hard enough, you can still make money trading volatility in the calmest U.S. stock market in six decades. One tactic, skew buying, is paying off for speculators who take a position on price discrepancies between bullish and The market is actually seeing a mild amount of selling today, even though it really isn't anything to really brag about. S&P 500 (SPX) is back below the 20-day moving average which has been key to a sell-off all along. You have to be careful about not Many institutional investors and banks advised clients not to trade currency during the market volatility in the lead-up to the United Kingdom’s recent vote to the leave the European Union. Clients were advised against putting money into a market amid .
Much of attention heaped upon these ETFs falls into the category of adulation, but there are concerns that among U.S.-focused low volatility products, the trade is crowded and that frothy valuations could prompt a dangerous rush for the exits. Nearly half CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and Volatility Trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options When all the markets seem stuck within a very thin trading range, there’s not much opportunity Referencing the first chart in the post, the last time two times there was no volatility to be seen resulted with either big down moves (see 2007-2008 Since the RBI does not have any control on the movement of the currency in these offshore markets, it was feared that the currency would be exposed to volatility if offshore rupee trading increases. Strong linkage between offshore and onshore price of the .