Sector Changes The market is sitting at all-time highs after a nice climb over the last 3 ½ weeks which erased the sell-off that occurred at the end of September through mid-October. During this run of the market, as well as the overall bullish performance of the market this year, you would expect all sectors would be enjoying the move. However, this is not the case. According to the sector performance on Finviz.com, the Basic Materials sector has lost ground over the last week, the last month, the last 3 […]

The technical definition of implied volatility is “the market’s estimate of future volatility derived from the option’s price.” In simpler words, it means that option prices are getting more expensive as implied volatility rises and option prices are becoming cheaper as implied volatility drops. Implied volatility is calculated based on a weighted average of call and put prices of various strikes and different expirations. As the market anticipates greater future volatility of the stock price, due to some foreseen news event, option prices will start to rise. The market interprets […]