Wildbilly
9 years ago
Markets either going up or down this week lol,
Goldman: The Options Market Says the S&P 500 Is Poised for a Major Move this Week - Bloomberg Business
Strap in!
Options markets are pricing in a big swing for the S&P 500 this week, according to Goldman Sachs.
Just don't ask which direction the move will be in.
Goldman Equity Derivatives Strategist Krag "Buzz" Gregory observes that the S&P 500 straddle -- a trade that profits if the market goes at least a certain magnitude either up or down -- is pricing in a gain or loss of 2.4 percent this week, based on options set to expire on Friday. As such, the S&P 500, which closed at 1,931 on Friday, would have to fall below 1,885 or rise above 1,978 this week for options traders to make a positive return on the straddle trade.
Traders will have plenty of new information to digest during a particularly busy stretch for U.S. data. The top-tier releases are back-loaded to the end of the week, with the ISM Manufacturing index and Non-Farm Payrolls reports for September due out on Thursday and Friday, respectively. The former is expected to sink to 50.6, its lowest level since May 2013, while the latter is forecast to show that 197,000 net new jobs were added over the course of the month.
But even in light of the jam-packed calendar, the expected oscillation is significantly larger than normal.
"While the straddle price is down from a local high of 4.7 percent in August, the expected move of +/- 2.4 percent is 1.7 times its median level 1 week prior to payroll releases over the last year," wrote the strategist.
Gregory also notes that the spot level of the VIX index, which measures the implied volatility of the S&P 500 over the next thirty days, indicates that "volatility is searching for a new home." At 23.6, the spot level of VIX is between 18, a level Goldman thinks is consistent with where the economy is in the business cycle, and 26, which constitutes recession-level volatility.
And as for the structure of the VIX futures curve, its flatness -- with a range of less than 1 point for all contracts between October 2015 and April 2016 -- suggests "extreme indecision," according to Gregory.
Bloomberg
"While we wish the VIX a speedy recovery, in our view an indecisive VIX is justifiable," wrote the strategist. "The market is searching for improvement in U.S. and global economic data."
http://www.bloomberg.com/news/articles/2015-09-28/goldman-the-options-market-says-the-s-p-500-is-poised-for-a-major-move-this-week
skoondog64
9 years ago
I brought 2000 shares of CVOL AND I BROUGHT AT .44 I'm VERY HAPPY!!! Now All I need is FORC and TNEN to kick in, and I will enjoy the rest of the year!!!
When you can pick stocks, and make $890.00 work for you, and turn it into $2040.00 That's a good return.
now lets make 25,000,000 shares of FORC start to Rock!!! And life is good. See folks to make money in the penny stock world, you must be in before it starts to move. That's why you always want 18 to 20 stocks working for you at all times!!!! Its a must...
ParaBellum
9 years ago
NEW YORK--(BUSINESS WIRE)--
Citigroup Inc. does not intend to issue any additional notes in its three series of C-Tracks ETNs. These ETNs, which will continue to trade on the NYSE Arca, are listed below:
• C-Tracks Exchange-Traded Notes Based on the Performance of the Citi Volatility Index Total Return Due November 12, 2020 (NYSE Arca:CVOL);
• C-Tracks Exchange-Traded Notes Based on the Performance of the Miller/Howard MLP Fundamental Index Due September 28, 2023 (NYSE Arca:MLPC); and
• C-Tracks Exchange-Traded Notes Miller/Howard Strategic Dividend Reinvestor Due September 16, 2024 (NYSE Arca:DIVC).
Citigroup Inc. expects that its affiliate Citigroup Global Markets Inc. (“CGMI”) may continue to sell any of these exchange-traded notes that it now holds or in the future may acquire. These include notes issued by Citigroup Inc. prior to the date of this announcement and not yet sold to the public as well as notes previously issued by Citigroup Inc. that CGMI may repurchase from the public from time to time.