Saturday, August 11, 2012

Overbought with no VolaRisk is BULLISH


When we look at the Analysis of the entire Option chains we found sth. interesting, namely that we are currently in a set up where....

  1. Price relative to the positioning in the Option Chain is Oversold
  2. ...but the internal structuce within the option chain does not expect any meaningful Volatility
Normally these Indicators are in cync, i.e. when the Market is Overbought you expect Vola. When it is not then the temporary set up tends to get back in sync in a bullish fashion. 








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