Most Volatile Period Ever

We all know the market has been volatile lately, but the Bespoke Financial Group published a chart that shows that this has been the most volatile period in stock market history – exceeding the huge moves of the early 1930s.


Over the past 50 days, the S&P absolute daily % price change was 3.82%.  Less than one year ago (Feb 2008) the absolute daily % price change was a mere 0.33%. 

It's no wonder that options are priced so high.  In fact, one can easily argue that options were really inexpensive because the market was so volatile.


Adam (Daily Options Report) reminds us that just a few years ago "we went something like 2 years without a 2% move in the market in any one day. Now we don't even blink at a 2% up or down open."

Regarding the sale of options, he says: "Now they are a better sale now at mid 60's volatility than they were on
the way up. A MUCH better sale. But time will tell whether it's a great spot to unload options…"

As a buyer of iron condors, I agree.

Happy Thanksgiving.



One Response to Most Volatile Period Ever

  1. DP 11/26/2008 at 6:54 AM #

    You mean there’s actual articles on the daily options report? I just go there to look at the pictures 🙂