Options

Biotech Sector M&A Breakdown: Stocks To Watch

The Biotech Sector (NASDAQ:IBB) has been volatile the last few weeks, more so than the market at least with two opposing forces. On one side, sell-offs look to be election related on fears of further scrutiny on drug pricing weighing on future profits, and on the other side, a growing…

Understanding The VIX: Now And Throughout Stock Market History

The VIX Volatility Index (INDEXCBOE:VIX) is back in the headlines. Also known as The Fear Index, the VIX is arguably the most over-analyzed tool on Wall Street regarding its real-world predictive powers relative to the long-term path of the stock market (i.e. the S&P 500 Index: INDEXSP:.INX). Today we’ll spend some time…

VIX Volatility Index Showing Near-Term Staying Power

Welcome back, volatility. The VIX Volatility Index (INDEXCBOE:VIX) jumped again yesterday as investors were whipped around for another day. Following 43 days spent within a narrow trading band (a total range of 1.75%), the S&P 500 Index (INDEXSP:.INX) has now had three consecutive days with moves in excess of 1.5%. With…

ISEE Call Put Ratio Hit Lowest Level Ever… Huh?

Options data from the International Securities Exchange does not corroborate the frothy readings seen in most other sentiment measures. Is the ISEE Call Put Ratio an outlier? We’ve mentioned several times in several different outlets that perhaps our biggest concern regarding the stock market presently is overheated sentiment. From professional…

VIX Shorts Near Extremes: Time To Protect Your Investments?

In our latest research article “Market Complacency Ruling The Day Into U.S. Election” we highlighted that complacency in the stock market, as measured by the VIX Volatility Index (INDEXCBOE:VIX), is at levels rarely seen. On its own this is not breaking news, but it is very strange when contrasted with…

Market Complacency Ruling The Day Into U.S. Presidential Election

What, Me Worry?  As we contemplate the upcoming U.S. presidential election one of 720Global’s chief investment related concerns is the potential for the election results to roil financial markets. Strangely, the major U.S. stock market indices (i.e. S&P 500 Index – INDEXSP:.INX) trade as if the presidential election results, be it a…

3 Offshore Energy Stocks With Bullish Options Activity

Recent Options Trading Activity Suggests Tradable Bottom in Select Offshore Energy Stocks One of the best opportunities to make money comes from noticing trends in options positioning. And over the past several years, I have seen it across countless industries. Particularly when themes develop. A new theme developed last week…

S&P 500 Bollinger Bands Contraction: A Short-Term Warning?

Today I thought I’d share a few of charts of interest for equity traders. One chart looks at the recent S&P 500 Bollinger Bands contraction which suggests the possibility of a decent move in the stock market. The two others look at the CBOE Volatility Index (INDEXCBOE:VIX) and suggest the potential…

Will Semiconductor Deals Spur More Consolidation? Who’s Next?

Earlier this week Analog Devices (NASDAQ:ADI) announced a $14.8B deal for Linear Tech (NASDAQ:LLTC), one of the largest Tech deals this year. This follows a flurry of semiconductor deals across the industry, boosting the sector (NASDAQ:SOXX). Less than two weeks ago Softbank announced a $28B deal for ARM Holdings (NASDAQ:ARMH) in…

Smart Money Positions For Rotation Into Financial Stocks

Smart Money Option Traders Position for Rotation to Financial Stocks / Sector Financial stocks, Banks and Insurance in particular, have been one of the places to avoid during this multi-year bull market. Those sectors were amongst those lagging the most… and they offered very little in terms of revenue growth….