Stocks Week Ahead: Volatility Dispersion Trade Unwind Likely Ahead of Key Earnings

Stocks experienced a volatile trading session on Friday, with the market fluctuating before finishing higher but remaining within the recent range of the past few days.

That previous diamond pattern formed around earnings season; now, another diamond is shaping up during the current earnings season.Systematic volatility funds typically sell implied volatility at the index level while buying implied volatility in mega-cap stocks, hedging their positions by going long on the underlying equities.As earnings reports start rolling in, that trade will begin to unwind, causing implied volatility to crash as each company reports.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

S&P 500 Rally Signals Broader Market Strength as Nvidia Takes a BackseatStocks Analysis by Michael Kramer covering: US Dollar Swiss Franc, US Dollar Canadian Dollar, S&P 500, Swiss Franc US Dollar. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Asian stocks drift, dollar firms as traders ponder US ratesAsian stocks drift, dollar firms as traders ponder US rates
Source: Investingcom - 🏆 450. / 53 Read more »

Chinese stocks climb; dollar steady before US inflation testChinese stocks climb; dollar steady before US inflation test
Source: Investingcom - 🏆 450. / 53 Read more »