For as much as it’s talked about, especially in the current market environment, volatility is misunderstood by many people. That’s not surprising, it’s a very difficult concept, and something traders spend their whole lives struggling with. It’s the only variable input in the options pricing model, yet people still come Read more…
There are a lot of reasons why the market might react differently than expected when a major piece of information has come out. However, it seems like this has been happening with greater frequency in the grain markets over the past few years. While there might be a few reasons Read more…
We emphasize changes in skew a lot in our reports and many of you may be wondering why? As option traders, we have long seen skew as a leading (or supplementary) indicator of price movement. What do we mean? We know funds aren’t the end-all-be-all to the market, and oftentimes Read more…