Historical Volatility vs. Implied Volatility

TheoTraders look for disparages between historical volatility and implied volatility to determine what kind of an edge the market is giving us. TheoTraders love nothing better than to sell premium. However, that's not what the market is giving us right now. The SPX implied volatility is telling us that it is more advantageous to be…

This is a Hallmark of Volatility

TheoTraders, today's move was a hallmark sign of volatility. The question is - when do you get short again? And that's why we get these explosive moves to the upside. Traders try to short these up moves all the way up. Remember, it's all about duration over direction. Here's how to handle the volatility...

The do's and don'ts of Trading Volatility

TheoTraders be aware of what to do and what not to do in volatility. Whether you're looking to sell the rally or buy the dip here are some ideas for you. The risk continues to be to the downside. That doesn't mean jump in and buy puts. There will be time for trade. It's very…

Brexit Fallout Continues: Here’s What To Watch

US and European bourses got off to a rocky start on Monday after a largely positive session overnight in Asia. You’ll want to watch financials here, both in the US and (especially) in Europe. Needless to say, markets were already questioning the solvency of some European banks and now, post-Brexit, we’ve got a real problem.…

What to Expect with Brexit

It's important to determine which risk metrics that TheoTraders use in the next 2 days. Implied volatility in the SPX is rising as we speak ahead of the much anticipated British referendum. Here's what I'm expecting over the next 2 days and how to protect & profit during this pivotal time in the market.

Fading the Market

TheoTraders know not to jump on the bandwagon. The ones that go against the grain are the ones who put the odds in their favor. Tonight let's look at the S&P expected range going into the Brexit vote and what levels we will want to fade.

Trade Ideas Ahead of Brexit

TheoTraders look at the implied volatility ahead of a major news announcement. This week is the British referendum vote. This is like an earnings announcement for the entire market. Bonds have already made a huge move in anticipation of the vote. Even if vote is to stay we could see a lot of volatility from…

Volatility Increases After Fed Announcement

TheoTraders stay in tuned to the volatility after a major announcement. The Fed saw fit to do... nothing! They didn't even change their statement. How will market react going forward? Let's take a look at the markets tonight and find out what you can expect.

Volatility is Exploding: Get ready for a major event

TheoTraders always know what their risk is! Today volatility exploded higher. Short term volatility matched longer term volatility. The market is buying volatility with both hands. TheoTraders get prepared for a major market event. Watch the video now to be prepared.

Brace Yourselves, Volatility Draws Nigh, PIMCO Warns

One of the key themes I try to communicate to investors is that in the current environment, you simply can’t understand markets if you don’t understand geopolitics. This has always been the case to a certain extent, but it’s arguably more true today than ever. The Saudis, for instance, are wielding their sway over oil…

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