It Smells Like Acceptance One of the true benefits of understanding the options market is that you have the ability to gauge investor sentiment real time, as measured by the rise and fall in the extrinsic value of options. We normally see analysis of the VIX, where any strong spike indicates fear in the market
GLD made a technical breakout today, hitting all time highs-- but I feel that it may be under-subscribed. I took a quick look at marketwatch.com, and the GLD news was not above the fold; rather it was being treated as back-page news.. It feels as though there hasn't been a good bout of speculative fervor
Fred Wilson is out with a post about the supposed intrinsic value of gold and whether it makes sense as part of an investment portfolio. He cites the fact that it doesn't provide any dividends or other value, and the whole post is well worth a read. You can view it here. I've seen discussions
This video explains how gold options are structured a little differently than equity options. It was on the iPad this past Wednesday. All the gold miner names I mentioned were up over 3% the day after I put the video out there.
Back at the end of August, I mentioned 2 Volatility Trackers to be watching. We focus so much on the VIX, but we also need to be following OVX and GVZ. Well based on the GLD price action and the vol outlook given by GVZ, I thought it was a good time to buy some
Over the past few years, the VIX has risen in popularity among investors. With the crash of 2008, investors and financial media became glued to the VIX chart, looking for mean reversion or other sets of tea leaves. Because of this exposure I'd say it's safe to say it's "Cramer-famous," which is sort of like