Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz and Banter



The current VIX index is once again signalling a possible significant increase in volatility. Coupled with the recent option activity, reported on Friday, characterized by significant out of the money call selling and a dirth of put buying, this could signal an end to the building complacency that has been prevelent in the market for the last several weeks (or is it months). My thesis of increasing volatility as a function of ballooning debt in both the private and public sectors has been waiting for this fundamental tenet to seep into option pricing. I have concentrated my long volatility portfolio in the most leveraged names and those most affected by bond volatility.

This technical formation in the VIX has failed several times recently; perhaps my fellow Minyans more astute in technical analysis can comment.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos