Financial uncertainty, high inflation, considerable equity selling, and recession fears characterize the current financial situation. Since the Covid-19 crisis in 2021, the VIX index, a well-known indication of market volatility,…
Month: April 2022
Why Options Pricing Theory is Important to Your Trades
When options pricing theory is discussed, many retail traders’ eyes start to glaze over, or they click elsewhere. Traders will ask, “why does options pricing theory matter to me –…
The Wage-Price Spiral
In light of the high inflationary environment prevailing since the beginning of 2022, the threat of a wage-price spiral has emerged. Many economists are concerned about the economic consequences and…
The Debate: In The Money vs. Out Of The Money Options
Everyone seems to have a strong opinion: “I never buy out of the money (OTM) options; they are a waste of money” or “I never buy in the money (ITM)…
Inflation: Cost-Push vs. Demand-Pull
The first quarter of 2022 was a watershed moment in terms of rising costs. Inflation in the United States rose at a 40-year high and has since been speeding up…
Unusual Options Activity, the Case with China ADRs, and Cannabis Stocks
Unusual options activity (UOA) is a useful tool for forecasting hedge funds and large institutional money movements. Many stocks undergo such activity during earnings season, as the current call options…