Questions tagged [volatility]

For questions related to measurements of the range of returns for a given equity, bond, or market index.

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What is the daily rebalanced leverage ratio that is ideal for the S&P 500 based on past performance?

This question assumes an investor with a very low risk-aversion coefficient. The risk-aversion coefficient is basically the 2nd-derivative of an investor's utility function as a function of money. An ...
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7answers
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What does it mean to long the convexity of options?

In this Bloomberg video, Curnutt talks about volatility and the convexity of options. Specifically, he says; The spread between the VIX sitting there at 20 for a period of time and this realized vol ...
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1answer
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Why did Apple instantly become the most volatile stock in the US?

I fully understand that it went up quickly by a lot, and have no problem with the recent drop. But why did it seem to instantly become so volatile? It seems like every day it's up or down 2% or more....
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155 views

Metrics for screening stocks for pivot trading

I've been looking for tips on screening stocks that are a good fit for pivot trading. I've tried Ameritrade, ShareBuilder, NASDAQ and some other screeners but I don't see a metric for volatility which ...
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1answer
964 views

Does technical analysis work on penny stocks?

Does technical analysis work on penny stocks? If yes, and we're talking about stocks that trade under $3, is there a point at which it stops being effective? If yes, does technical analysis work the ...
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1answer
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How to see an option chain's implied volatility skew

Are there any inexpensive tools, web-sites or services you know of where one can see: a) current implied volatility skew for an option chain b) historic implied volatility skew Thanks
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2answers
1k views

What is volatility drag?

Given a leverage portfolio, what does the term volatility drag mean? And how does it affect the value of the portfolio?
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4answers
440 views

Is it possible to quantify the probability of sudden big movements for a high-volume stock?

As an example: Over this past weekend, from Friday close to Monday open, Netflix (NFLX) dropped about 36% in stock price. Going back to July, Netflix was trading near $300, and now it is at about $...
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1answer
3k views

What is the UK equivalent of the VIX volatility index?

The VIX is a measurement of volatility in US markets. What about UK markets?
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671 views

What to make of historical stock market volatility?

I looked on Google Finance today at the DJIA, and kept backing up the time window until I saw the whole display they had, from 1971 until today (Oct 2011). It seemed to me that the volatility--the ...
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7answers
1k views

How to make money from a downward European market?

The trader Alessio Rastani speaks in a BBC interview about the development of the Euro zone and his predictions are quite severe. He predicts a crash within the next 12 months but is also telling ...
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2answers
203 views

How should I use the Volatility Index?

I do have a basic understanding of the Volatility Index (Chicago Board Options Exchange Market Volatility Index), but I wasn't sure how this index is best used by an individual, average investor. ...
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411 views

Why is silver so volatile compared to the S&P 500?

As an example, silver took a 9.4% hit on 9/22/2011, which was a bad market day -- the Dow dropped over 3.5%. The conventional wisdom is that precious metals like silver are a hedge against a falling ...
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how does one see the CBOE VIX index on Google Finance?

How does one see the CBOE VIX index on Google Finance? What is a symbol I can use?
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1answer
139 views

How do I research, analyze, and choose the right mutual fund for a roth ira?

I recently opened a Roth IRA in the USA and I'm new to investing. How do I research a mutual fund and what aspects should I analyze to figure out if it fits my investment strategy (I might not even ...
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5answers
2k views

Why are the prices of some commodities (e.g. oil) more volatile than others?

Why are the prices of some commodities (e.g. oil) more volatile than others?
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Fund or ETF that simulates the investment goals of an options "straddle" strategy?

With all the market volatility of late, I was thinking that it might be a good short term strategy to employ a straddle approach. For those not familiar with Options trading: This is a strategy ...

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