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.


Volatile

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.

Turkey

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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 🙂