OPTIONSMART MORNING UPDATE: Staying in trading range

1. OUTLOOK: Investors mulled mixed reports on inflation and manufacturing and opted to step back. The first day of the Federal Reserve's two-day policy meeting was also in focus. BBY reported better-than-expected quarterly profit before the start of trading. The electronics retailer also lifted its current-quarter revenue and earnings forecast. QQQQ implied volatility little changed. This push and pull is likely to keep stocks pretty rangebound for the time being.

.

 and receive pre-market

real-time updates and comments!

2. FEAR GAUGE: QQQQ implied volatility little changed.  

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 OFFER: The "Global ETF Plays" service has been launched in 2004 and delivered a 14.2% gain per month-long trade with a 91% (153 of 168) success ratio.

Sign up today with a coupon B883 and receive 30% off any Global ETF Plays subscription. New subscribers only! 

 Learn more about our services and special offers!