Silver as an investment

Tag Archives: options

“Why Does Extraordinarily Low Volatility Matter” Baupost Explains…

With elites increasingly sounding the alarm about the state of the stock market, and various market participants fearing the complacency is masking the fragility of the market's true character; it is no surprise that Baupost's recently named President and Head of Public Investments, Jim Mooney, has joined the chorus. While Mooney (and Klarman's) warning regarding […]

“The Swarm Effect”: Every Trader Today Has Just Two Choices

Few have dedicated as much time and effort into explaining the behavioral aspects of trading in a time of central planning (or “metastability“) as Deutsche Bank’s whimsical derivatives-philosopher, Aleksandar Kocic. Three weeks after becoming the first Wall Street strategist to quantify (and qualify) the concept of market “complacency“, and one week after explaining that the […]

Mark Cudmore: “The Marginal U.S. Stock Trader Will Be Selling Rather Than Buying This Week”

By Mark Cudmore, a former FX trader who writes for Bloomberg U.S. Equities Face a Tough Week as the Love Has Gone It’s going to be a long, tough week for U.S. equities. While there’s no need to overreact to the Trump administration’s very public failure to reform health care, the evidence suggests that the […]

1.4 Trillion Reasons Why Today’s ‘Quad Witch’ Could Matter

In 2015, options expirations mattered – stocks would tear higher into the event and like clockwork sink back lower after. 2016 was not so obvious but the all-important 'quad-witch' expirations still had some bias. However, if JPMorgan's equity derivative strategists are right, today's 'quad-witch'  – with $1.4 trillion worth of S&P 500 notional set to […]

Spot The Megamerger Leak, Kraft-Unilever Edition

As we detailed earlier, while the story was first leaked by the FT Alphaville blog, there was immediate speculation how widely this morning's megamerger was leaked first. Sure enough, volume of bullish Unilever options rallied in the past two days. As Bloomberg points out, on Unilever’s U.S. ticker, 10,909 calls traded on Feb. 15, the […]

Why February May Be An Ugly Month For Markets: Here Are BofA’s “Danger Signals”

With the S&P500 ending January on the back foot, more pain may be in store for markets in February. This is the observation of BofA’s chief technician Stephen Suttmeyer, who provides several danger signals why bulls may want to be particularly cautious ahead of the coming months. As he notes, the post-Presidential Election S&P 500 […]

Wall Street Analysts Are Slowly Losing It

Back in April, we commiserated with BBG ex-trader and commentator, Richard Breslow, who when looking at the ongoing events in markets, had a near nervous breakdown. For those who missed it, here are the key excerpts: Trading is a hard business. The world is becoming a more complicated place: a number out of China may […]

UBS Warns “One-Sided” Sentiment Is Pure Contrarian Indicator, Upside Limited

In their latest technical analysis report, UBS' Michael Riesner and Marc Muller warn that, it’s been a long time since we had such a relatively clear and one-sided picture on the sentiment side, which we can just describe as tactical contrarian and too complacent. With the vertical post-election rally, the reflation trade with the relevant […]

The Gold Bears Are in For a Massive Surprise

If you’re serious about making money from investing in the financial markets, you need to be able to read the crowd… and go against it. Let me give you an example… Currently one of the biggest consensus views is that the Gold rally is over and Gold is dead as an investment. Right off the […]

“This Ain’t Another Brexit” Traders Scramble To Hedge A Trump Victory

Having previously explained, it's all about Florida, North Caroline, and Ohio… and what time traders can go to bed on election night, Bloomberg reports on how crazed FX traders are scrambling to figure out just what will happen as the Trump-Clinton saga plays out. Already the most sensitive risk assets are swinging back on tonight's […]