} Summary line-height: 1.6em; As implied volatility declines, a contrarian trade idea in the energy sector follows the Market Review with an updated SPX Rising Wedge chart. font-family:"Times New Roman",serif; Interestingly, on April 20 as the May futures headed into negative territory, it continued advancing despite all the negative crude oil rhetoric. p {

border-color:#000000; To receive the Digest by e-mail let us know at Support@IVolatility.com In addition to Volatility we use fundamental and technical analysis tools to increase the probability of success and reduce risk. If this anonymous quote was valid last October, then it's even more relevant now as the Fed's action so far accounts for about 22% of the GDP, with the G-men (and women) adding another 13% of "Mo Money" for total support of 35%. This next chart shows as our calculation of Larry McMillan’s day-weighted average between the first and second month futures contracts as of last Friday. Then last Tuesday it gapped open lower closing below the lower boundary. Without a decent short put implied volatility edge on Friday, the net debit was 1.04 (4.10 -2.14 +.92).

After bottoming at 2192 on March 23, creating an impulse 3-wave, it quickly rebounded forming a potential small Rising Wedge. *Trading in financial markets carries a significant risk of capital loss. document.write(theYear) Different trades for different volatility opportunities. list-style-type: none; Positive momentum by the popular large capitalization stocks, along with declining options implied volatility, improving VIX futures premium, and continuing market breadth improvement by our preferred McClellan Summation Indicator, all reflect increasing bullish sentiment. Until SPX implied volatility returns to around 20%, option-selling strategies remain favorable; especially those with limited and defined risk such as Iron Condors and Short Put Spreads as well as short puts on stocks with the intention of being assigned. CBOE Volatility Index® (VIX) 35.93 declined another 2.22 points or -5.82% last week. There are dozens of different oil benchmarks, with each one representing crude oil from a part of the globe. Until SPX implied volatility returns to around 20%, option-selling strategies remain favorable; especially those with limited and defined risk such as Iron Condors and Short Put Spreads as well as short puts on stocks with the intention of being assigned. padding: 3px; p.MsoNormal {

Although May WTI crude oil futures prices briefly traded as low as -40.32 last Monday before expiring last Tuesday, both the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR Fund (XLE) bottomed on March 18 and began trending higher. There are various ways of investing in oil via cash or future contract, equities or ETF's. Oil is one of the most actively traded commodities in this region. font-family:"Times New Roman", Times, serif; theYear=theYear+1900 ul {

Different trades for different volatility opportunities. line-height:115%; We provide utmost value by way of dedicated support and services to each of our clients, irrespective of the size of their investment. color: #333333; Until last Tuesday, a potential Rising Wedge that could the picture and increase the likelihood of retesting the March 23 low remained possible. Apparently, when the Fed included junk bonds on their purchase menu it improved the survival changes for some of the smaller exploration and production companies in this ETF. margin: 3px; However, the price of most of them are pegged to one of the following three primary benchmarks: Whatever support you need, our service team is here to help. font-family:"Times New Roman", Times, serif;

.style45 { S&P 500 Index (SPX) 2836.74 declined 37.82 points or -1.32% last week closing just above the 50-day Moving Average at 2807.71. Strategy It is an important driving force of the economy. Referred to as “black gold” oil is used for manufacturing everything from plastics to petroleum, cosmetics to cars, and fabrics to pharmaceuticals. Send us your questions or comments, or if you would like us to look at a specific stock, ETF or futures contract, let us know at Support@IVolatility.com or use the blog response at the bottom of the IVolatility Trading Digest™ page on the IVolatility.com website. There are multiple order types available, so you can control exactly when and how your trades are executed. Oil demand is recovering but at a very slow pace amid the COVID-19 pandemic and economic slowdown. padding: 10px; Globally, it's not only used as petroleum for travel and transportation purposes, but also as a component in producing consumer goods. list-style-image: url(http://www.ivolatility.com/i/blog/bullet.png); font:"Times New Roman", Times, serif; VIX Futures Premium Actionable Options™

After reaching an intraday low of 29.14 on March 18, it began trending higher on April 1 following WTI crude oil futures up and down until April 20 when it diverged and continued higher as the futures collapsed. With over 3 decades of financial know-how, we help you meet the challenges of today’s global financial marketplace with -. Big Data? The premium measures the amount that futures currently trade above or below the cash VIX, (contango or backwardation) until front month futures contract converges with the VIX at the next monthly futures expiration on Wednesday May 20. With a current Historical Volatility of 93.65 and 90.96 using the Parkinson's range method, with an Implied Volatility Index Mean of 75.70 at .30 its 52-week range, the implied volatility/historical volatility ratio using the range method is .83 so option prices are somewhat inexpensive compared to the recent movement of the ETF even as the implied volatility declines.

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