There are two events ahead that could be big stock market movers, Wells Fargo says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 72%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Every strike in the U.S.-China trade war has captivated markets this month, but the options market may be discounting even more big swings coming down the pipeline.

"But, if you look at the options market, they're not pricing in a ton of event risk or event premium around that event," said Chintawongvanich. "The options market is pricing in a lot of volatility in the next one to two weeks which makes sense given we're playing headline pingpong here with the markets with any tweet moving the market up or down."

S&P 500 forward volatility through to May 24 is expected to come in at 19.3, Chintawongvanich said. However, the options market is currently looking for volatility relatively subdued at below 16 in June. That means that options covering that period are comparatively cheap, he said. "A lot of people kind of bought protection when the trade stuff first started flaring up a couple of weeks ago. If you have stuff that's expiring soon … I would suggest definitely look at some of those options and what we call rolling them out, so selling those near-dated options and buying options that expire on July 5. That will capture both the G-20 meetings, June 28 and 29, and the next FOMC meeting.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

No sh*t Sherlock... It doesn't take a genius to guess China and Iran

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Private prison company GEO Group is worried that public pressure to divest could hurt its bottom lineJP Morgan and Wells Fargo divested from private prisons after a massive public pressure campaign. GEO Group is worried about what may come next. GOOD! SeezBeez NO ONE should make a profit from the suffering of others. NO ONE. Especially not a Trump Humper.
La source: Newsweek - 🏆 468. / 52 Lire la suite »

Cannabis stocks join market downturn ahead of major earnings reportsCannabis stocks were mostly lower Monday, amid a broad market tumble related to the Sino-American trade fight. Shocking. I thought MJ stocks were going to be the blue chips of tomorrow..
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

These two Dow stocks could provide shelter in a volatile marketTwo Dow components look like buys to some traders even though the DJIA is having its worst week of the year.
La source: CNBC - 🏆 12. / 72 Lire la suite »

Stock-market bears say don’t forget about this yield-curve signal as trade fears sink equitiesAn escalating, high-stakes tariff fight between the U.S. and China gets the blame for Monday’s financial market turmoil, but a long-term stock-market bear...
La source: MarketWatch - 🏆 3. / 97 Lire la suite »