Option traders know that volatility is perhaps one of the most important factors determining options prices. Extremely volatile markets tend to have expensive options. Extremely quiet markets tend to have cheap options. That’s why some… Read More
Bottom Near in Sugar?
We think so. High crude oil prices incentivize the use of ethanol as a gasoline additive in the US and as a substitute for gasoline in Brazil. The US uses its huge corn crop to… Read More
Commodity Volatility Picking Up: Hold Corn Calls, Action Time in Sugar
It was bound to happen. Volatility in the commodity sector is starting to ramp up. And while the increase isn’t exactly across the board, volatility in most of the markets we’ve identified as being abnormally… Read More
Silver Taking the Lead
Silver bulls finally have something to cheer about. After months of lagging its richer cousin, silver is making a move on gold. This is good news for both metals should it continue. Silver nearly always… Read More
Take a Bite Out of Bitcoin: Two Trades to Consider Right Now
Welcome to Crypto World! Crypto World is a universe defined and dominated by the Internet, the cloud and millions of computer algorithms. Find your place in a cyber space where pieces of code can be… Read More
Grains: The Last Cheap Asset Class Appears Ready to Rally
The key to finding “alpha” (performance above and beyond major averages) is to find an asset class that is undervalued, get long that asset class and wait. That can be a problem in an environment… Read More
Will The Next Volatility Surprise Be In Commodities?
Humans are hard-wired to make predictions about the future. It is one of the mechanisms that help us learn. These predictions are often based on events in the past. For example, a child that has… Read More
Bitcoin: Currency of the Future Or Pure Speculation? (Part 3 of 3)
(Click to read or re-read “Part 1” and/or “Part 2.”) Bitcoin Futures Solve Certain Issues The incredible growth in Bitcoin’s market capitalization, combined with growing global acceptance of it as a potentially-lucrative store of value,… Read More
Bitcoin: Currency of the Future Or Pure Speculation? (Part 2 of 3)
(Click here to read or re-read “Part 1”) “Mining” Bitcoin There are three ways to obtain bitcoins: 1) accept them as payment for goods and services, 2) buy them on an exchange, or 3) “mine”… Read More
Bitcoin: Currency of the Future Or Pure Speculation? (Part 1 of 3)
In 2009, a Norwegian student named Kristoffer Koch bought 5,000 bitcoins for roughly $27 as part of his thesis on encryption technology. He put them in his digital wallet and promptly forgot about them. Four… Read More