Fed Gets Dovish? | Post Election Year Cycle | Option Vanna Rally? | In the End its Earnings

Derek Moore and Shane Skinner geek out on the second derivative option Greek Vanna to understand how implied volatility changes cause buying or selling in markets. Plus, does Powell and the Fed not care about inflation anymore? Later, examine the post-election year seasonality to see if we are entering a historically weak period. All that plus what happens historically in markets when the fed has long period between rate cuts, interest rate probabilities, how to understand why stocks go up or down (return attribution). 

 

What is Options Vanna?

Why do implied volatility changes cause buying and selling in markets?

How do option market makers hedge or offset option orders?

Understanding how price to forward earnings (the multiple) and EPS estimates drive price

What type of environment are we in currently?

The Fed’s Jerome Powell Jackson Hole speech hints at dropping 2% inflation target

Did the Federal Reserve just give the ‘all clear’ for a rate cut turning dovish?

Why earnings estimates drive price in the S&P 500 index

How implied volatility changes affect an option’s Delta

How VIX Spikes and subsequent drop causes additional buyers to come in

What historically happens August to October from a post-election seasonal standpoint?

Data shows that when the Fed has time between interest rate cuts historically markets do well

 

Mentioned in this Episode

 

Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT

 

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt

 

Derek’s book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

 

Contact Derek [e-mail]