The Euro drama has entered a new phase. Unless the Germany, the European Central Bank, and the IMF blink it’s likely Greece will exit the Euro. Financial austerity piled on top of crushing unemployment has fomented widespread discontent with ongoing demands from the richer countries for the poor to tighten their belts even further. The stay-the-course crowd still claims that this pain will lead to …
I’m starting a new feature on my blog that will show up in my side bar—The Volatility Landscape. In this space I will post alerts, news, predictions, volatility ETN/ETFs that I think should be avoided, links to white papers/ newsletters, my wish list of volatility items, and a link to my Volatility Tickers master list of all US listed volatility funds. A few comments about …
At the moment investment grade bonds with their low yields and risky exposure to interest rates are unattractive places to put your money. Broad equity indexes like the S&P 500 have higher potential gains and dividend yields in the 2% range, but the dramatic drawdowns of 2008/2009 are still fresh in our minds. Commodities like gold and oil look expensive—so where is a …
If you need options on the S&P 500 the CBOE’s SPX series is one of the most popular solutions in the marketplace. The CBOE continues to enhance this product with additional expirations—the latest being the addition of options expiring on Tuesday and Thursday afternoons in the spring of 2022. These products were immediately successful. With all the days of the week covered it will interesting …
In March 2012 Credit Suisse announced that they would resume limited share creation, but TVIX is still not accurately tracking its indicative value (IV). An April 11, 2012 intra-day quote gave TVIX’s bid at 9.39 while its IV on Yahoo Finance (symbol ^TVIX-IV) was 8.21—a 6.4% difference. By comparison ProShares’ UVXY, which has the same performance goals as TVIX was at 20.30, with an IV of …
