Silver as an investment

Category Archives: Mathematical finance

Is Historically Low Volatility About To Surge?

Authored by Dmitri Speck via Acting-Man.com, Suspicion Asleep You have probably noticed it already: stock market volatility has recently all but disappeared. This raises an important question for every investor: Has the market established a permanent plateau of low volatility, or is the current period of low volatility just the calm before the storm?   […]

Morgan Stanley: “Well, That Escalated Quickly”

“Well, that escalated quickly.” That’s how Morgan Stanley’s chief cross-asset strategist Andrew Sheets summarizes events in the last week in his latest Sunday Start note, in which he describes how following one of the calmest stretches for stocks since the 1960s, an escalating war of words with North Korea hit late summer markets priced for […]

How To Prepare For Another Market Face-Pounding

Authored by MN Gordon via EconomicPrism.com, “Markets make opinions,” goes the old Wall Street adage.  Indeed, this sounds like a nifty thing to say.  But what does it really mean? Perhaps this means that after a long period of rising stocks prices otherwise intelligent people conceive of clever explanations for why the good times will […]

“You Could See Panic”: PIMCO Joins Gundlach In Loading Up On S&P Puts

In the world of giant bond funds, imitation of trades just may be the sincerest form of flattery. Just two days after DoubleLine’s Jeff Gundlach told Bloomberg and CNBC that he was taking profits in high risk assets, including corporate profits, building a buffer and loading up on VIX as a surge in volatility was […]

What’s Next For The VIX? RBC Explains

Yesterday, as the VIX was setting up for one of its biggest one day jumps in history, we reminded readers just how massive the short-vol overhang was courtesy of the following chart from JPMorgan showing that the net Vega on VIX-related ETFs was at an all time high, suggesting that the risk of a vol-buying […]

“We Need More Suckers At The Table” – Quant Funds Stumble As Dumb-Money Disappears

The omniptence of artificial intelligence is unquestioned. The 'future' is automation, robotization, and algorithmic domination is the mantra of the new normal prognosticators – and anyone who challenges this world view is a luddite or 'denier'. There's just one problem – those quantitative, AI-based, computerized algos, that are supposed to be making people obsolete in […]

As VIX Explodes, A Painful Warning: The Vega Of VIX ETFs Has Never Been Higher

With the VIX soaring, from single digits yesterday to over 15, risk is suddenly breaking out above the crucial Kolanovic redline level… And Nasdaq is tumbling. … it is worth reminding readers just how coiled the short-vol sector is, something we described two weeks ago in “If The VIX Goes Bananas” This Is What It […]

VIX Spikes Above 13 As Yesterday’s Buy-The-F**king-Fire-And-Fury-Dip Bounce Is Erased

The machines are patting each other on the back this morning. After crushing VIX into the close, to get the S&P back to even – proving that North Korea is a storm in a teacup – stuff is hitting the fan again overnight as Asian anxiety spreads into US markets with VIX spiking above 13 […]

Dismal Chinese Trade Data Sparks Panic-Buying In US Stocks

Because nothing says 'panic-buy' stocks like the worst Chinese trade data of the year. Something 'odd' ocurred at 0943ET. Stocks were lower and VIX higher, when suddenly… Nasdaq was panic-bid…   VIX was monkey-hammered…   And "Most Shorted" Stocks were squeezed higher…   Of course, this week does line up for a melt-up…

Anticipating “VIX Shock”, Interactive Brokers Raises Volatility Margins

Even as the VIX has continued to plumb new all time lows, unable to rebound from the realm of single-digits where it has spent a record amount of time in 2017, warnings about a potential surge in the volatility index have been growing in recent weeks. Last week, in a note looking at what may […]