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The Inflation Trader

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  • Hold Your Horses: Jobs Data and the Markets [View article]
    Well, I guess this means those documents show a lot of slimy dealings and perhaps greater debt than the ECB is prepared to admit to...but hard to tell without actually seeing the documents!
    Nov 6 03:56 PM | Likes Like |Link to Comment
  • C-SPAN/CNBC Effect? [View article]
    The VIX rises when the market falls partly for mechanical reasons - lower-strike options trade at higher implied volatilities than higher-strike options, so when the market falls, the closer-to-the-money options become the higher-volatility ones. So there is always a directionality to the VIX in the short run at least.

    A SHARP decline in the market will of course cause the VIX to rise because of fear, as well. But the passage of these two huge events, for options pricing, shouldn't be underestimated. If the stock market trades near-flat for a couple of days, I think the VIX will fall quickly to its recent lows or below.
    Nov 3 01:20 AM | 1 Like Like |Link to Comment
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