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"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's...

"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's Marko Kolanovic, attributing the recent lack of action to large option sales (as traders try to generate yield) pinning the S&P near 1400. Much of these positions are expiring today, which should "loosen the grip" on the VIX (VXX). (h/t tradefast)
Comments (12)
  • wapiti
    , contributor
    Comments (703) | Send Message
     
    What's to say they haven't put new options on already??
    20 Aug 2012, 10:53 AM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
     
    Uhm, open interest?
    20 Aug 2012, 02:54 PM Reply Like
  • Daniel Banaszak
    , contributor
    Comments (160) | Send Message
     
    Market fundamentals don't justify low levels of VIX? The only market fundamentals I'm seeing are traders/investors hanging on every word of market manipulation that comes out of the Fed and the ECB. You ask me, the fundamentals justify a VIX of about 8 based on the willingness of central banks to commit unlimited market manipulation.
    20 Aug 2012, 11:37 AM Reply Like
  • wapiti
    , contributor
    Comments (703) | Send Message
     
    Dannybzak is spot on!!
    20 Aug 2012, 12:25 PM Reply Like
  • Bluechips1
    , contributor
    Comments (2) | Send Message
     
    How does it trade with less gain/loss than the actual VIX which up 8% today.
    20 Aug 2012, 01:44 PM Reply Like
  • phorque
    , contributor
    Comments (11) | Send Message
     
    It was actually up 4.24% but that was a good guess. NASD volatility was up 6.02%. Do you think you know something everyone else already knows?
    21 Aug 2012, 01:59 AM Reply Like
  • McOption
    , contributor
    Comments (104) | Send Message
     
    I agree with JPMorgan's Marko Kolanovic, I believe the VIX & VXX already have discounted the pie in the sky promises made by the FED & ECB.

     

    You have to very brave or naive to be going long the S&P right now.
    20 Aug 2012, 02:25 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Or traders will roll to continued bearish positions, and hedge with some "cheap" calls.
    20 Aug 2012, 02:53 PM Reply Like
  • TSculpture
    , contributor
    Comments (4) | Send Message
     
    So many comments I agree with, thanks to all. Starting to wonder if I'm blind, such high prices on such thin support!!! First time I'm holding a position overnight in some time - TZA - are we rounding this top?
    20 Aug 2012, 04:43 PM Reply Like
  • freetrade
    , contributor
    Comments (3) | Send Message
     
    Rolling strategy is killing UVXY sending it to lower lows
    20 Aug 2012, 09:59 PM Reply Like
  • IMF610
    , contributor
    Comments (6) | Send Message
     
    I trade UVXY all day everyday and I am up about 114% over the last 3 months while the instrument itself is down about 80% in the same timeframe. So in cantango or out of contango with roll is actually quite irrelevant. This is a trading instrument not an investment, the time decay on UVXY is wicked, the bottomline in trading this and others like it is to strictly trade on the chart technicals and you can get big.
    22 Aug 2012, 09:47 PM Reply Like
  • Hattie
    , contributor
    Comments (8) | Send Message
     
    Forget about the Ides of March, I'm speculating about the October Surprise before the election, which may well be a market plunge.
    21 Aug 2012, 06:48 AM Reply Like
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