Frederic Ruffy is an experienced trader and provides daily commentary and analysis of the options market. He is co-founder of WhatsTrading.com. His work has also appeared in Futures Magazine, Technical Analysis of Stocks & Commodities, Stock Futures and Options and Sentiment.
In addition to writing market commentary and trading-related books and articles, Fred has also worked as an instructor, educating investors on advanced topics such as measuring volatility, the benefits of sector rotation and the risks and potential profits from trading around earnings. An active trader himself, with more than 15 years of experience in the securities industry, his market observations and analysis of the options market are featured regularly in the financial press including Barron's, Reuters, The Wall Street Journal and Bloomberg.
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Recent Articles By The Author
Traders Tuned Into Streaming Music
Jill Malandrino and Fred Ruffy of WhatsTrading.com review options activity as Apple and Pandora react to WWDC announcements.
Eye on XLF Select Sector Fund
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.
Put Spreads Make Sense
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.
Volume and Implied Volatility Trends
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.
Implied Volatility on Rise
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.