By the time the headline explains the move, the opportunity may already be gone. → See the Signal Before the Story

Watch Out For This Big Market Risk, Don Kaufman Tells International Business Times

Don’t be lulled by low volatility in the market, TheoTrade Chief Market Strategist Don Kaufman says in this story analyzing weekly market activity.

“The low VIX, VVIX, and SKEW mean that the professional side of trading is not hedging,” Kaufman said.

“This situation lends itself to considerable downside risk. The VIX or implied volatility is not the barometer to follow in this situation and is not in line with price action. We can sell into the abyss very rapidly when professional traders are not hedged. If the market sells off, they will have to hedge into a falling market dynamically. This environment carries significant downside risk, with limited upside potential.”

See the full story here.

Don Kaufman

Don Kaufman is options trader and educator. Former CBOE market maker, former Chief Derivatives Instructor at thinkorswim, and former Director of the Trader Group at TD Ameritrade. In 2015 he co-founded TheoTrade to teach traders how volatility, probability, and risk really work.

More about Don Kaufman

	Today
09.00	Don Kaufman \| Pre-Market Prep \| FREE SESSION 09.20 09.30 Don Kaufman \| Early volatility 09.20 10.30
09.30
10.00
10.30	Jeff Bierman \| Market structure 10.30 11.30
11.00	Jeff Bierman \| Market structure 10.30 11.30
11.30	Brandon Chapman \| Ghost Hour 11.30 12.30
12.00	Brandon Chapman \| Ghost Hour 11.30 12.30
12.30	Gianni Di Poce \| Macro overview 12.30 13.15 Elizabeth \| Price Action 13.15 14.00
13.00
13.30
14.00	Corey Rosenbloom \| Options tactics 14.00 15.00
14.30	Corey Rosenbloom \| Options tactics 14.00 15.00
15.00	Blake Young \| Market wrap 15.00 16.00
15.30	Blake Young \| Market wrap 15.00 16.00