VIX: Is a Pattern Emerging?

VIX: Is a Pattern Emerging?

“Cluster, pop, revert” have been the watchwords in VIX of late. Today’s post highlights new research on this emerging pattern.

Clarifying 'Efficiency' Metrics

Clarifying 'Efficiency' Metrics

Today’s post highlights some important insights on efficiency metrics, and how traders can better apply the learnings from trading studies/backtests.

The Good Theoreticals

The Good Theoreticals

Today’s post highlights the intrinsic and extrinsic value of an option, and how the behavior of these values can ultimately affect trade management.

Backtesting Outlier Moves in SPY

Backtesting Outlier Moves in SPY

Ever wondered how common outlier moves are in SPY and what effect they have on short premium trades? Today’s post explores these questions and more!

Fresh Look at Gamma Scalping

Fresh Look at Gamma Scalping

If you embrace the delta-neutral philosophy, or are considering doing so, today’s post provides additional context.

Brexit Chaos and Pound Futures

Brexit Chaos and Pound Futures

New research by tastytrade highlights how IV Rank can be a valuable tool when analyzing potential trades in currency futures options.

Gold Bugs Rejoice!

Gold Bugs Rejoice!

Gold bugs are jumping after the recent rally in the precious metals sector.

Diversification: Avoiding Overlapping Bets

Diversification: Avoiding Overlapping Bets

Today’s post highlights the strong positive correlation between the major stock indices and why trading the same strategy in these underlyings can concentrate risk in your portfolio.

Delta: Backtesting its Predictive Value

Delta: Backtesting its Predictive Value

An option’s delta is often used to estimate the likelihood it finishes in-the-money (ITM). Today’s post examines the historical accuracy of that function.

Looking Around the "Trade War" Corner

Looking Around the "Trade War" Corner

Negotiators are working hard to meet a March 2nd deadline for a US-China trade agreement. Will that represent the end of the conflict, or the beginning of a new one?