Fred Ruffy says he will be watching the XLF select sector fund, which holds all financial-related stocks of the S&P 500, as we move into the second quarter. He says of all the exchange traded funds, the largest open interest positions are in the XLF April 16 and April 17 put options.
Fred Ruffy says the CBOE Volatility Index saw record volume this week. He notes that some institutional options trading desks are recommending that their clients take hedge positions.
Fred Ruffy points out that trading volume has for the most part been below normal levels recently. Even though implied volatility has generally been low, there are some IV skews that traders can take advantage of with options.
Fred Ruffy says we are seeing an increase in implied volatility across the entire market. He notes some defensive, or hedging, activity in terms of individual options contracts, reflecting a rise in bearish sentiment among traders.
Yesterday was the expiration for options on the CBOE Volatility Index, a barometer of market volatility. Fred Ruffy discusses a huge call spread that occurred in VIX trading.
Fred Ruffy says the S&P 500 gained about 6% last month, which, according to the "January barometer," indicates 2013 will be a good year for equity investors. Fred says the options market is off to a fairly decent start as well.
Let's dissect the true risk behind a bold trade recommendation from this weekend's Barron's.
Let's take a look at a unique sentiment indicator, the Credit Suisse Fear Index.
Let's take a look at two potential spreads one could play before VFC's earnings report.
This stock has a pattern of getting bid up into earnings and failing to meet lofty expectations. Jill Malandrino and Fred Ruffy tell you what the options trade is in front of the report.