OPTIONSMART MORNING UPDATE: Showed weakness 

1. OUTLOOK: The NASDAQ Index lagged its counterparts for the entire session, largely as a result of renewed weakness among large-cap tech. ERTS announced it expects the net revenue and earnings Q1 2010 to be below the guidance previously provided. Analysts think the Apple tablet could cost anywhere from $700 to $1,000. It may not end up dominating the emerging market for tablets, as some seem to expect. QQQQ's implied volatility jumped 10 points amid earnings jitters. AFTER HOURS: AA earnings failed to impress the market. U.S. futures point to a lower open.

.

 and receive pre-market

real-time updates and comments!

2. FEAR METER: QQQQ implied volatility jumped amid earnings jitters .

About Implied Volatility.  Investor fear and greed play a significant role in financial markets. The question is, how can investors measure market sentiment in an emerging market situation? How can they gauge the fear? Volatility is a well-known measure of risk in financial markets. When volatility is low, there is a lack of fear. High volatility, however, suggests a fearful markets. Volatility can be calculated in two ways. Either from historical stock price data or from current option price data. Using the second method results in an implied volatility measure. It is a reflection of fear and greed amongst a wide group of market professionals. It’s not wise to ignore this parameter.

4. SPECIAL OFFERS: n/a

Learn more about our services and special offers!