Us Stock Intelligence Agent | Eli, Bayo
The market is still in a range of new highs and lows. On Monday, the stock market almost recovered most of last week's losses, but yesterday's decline brought the market back to its low level of the past month.
Tuesday's decline is not a cause for concern, although it includes a sell-off in large-cap, high-growth stocks and a weak reaction to recent strong earnings data. These factors are effectively curbing the upward trend of the market futures index, and continue to lead to a small decline in the index "lower high" (lower high).
Overall, the market reacted more negatively to the earnings season than in any quarter since 2000. A big reason, of course, is that the market has risen by about 70% (pre-pricing) in less than a year on investors' expectations that the economy will stabilise earnings growth in 21 years. Bond yields fell further yesterday, although still above their previous highs after the upward breakthrough, which may have had a slight impact on talk of fiscal stimulus cuts in the Senate this week. However, the rumor has not been of much help to the high-growth concept (cloud, software, etc.). On the financial sector's side, the underlying stock price has performed well even with falling yields.
Undulating side
S & P 500 volatility Index (.VIX.US) $Maintained at a level above 20.S & P 500 ETF-SPDR (SPY.US) $Buying positions on the PUT side of the options chain continue to appear, that is, institutions have made the necessary hedging, but do not have much interest in shorting the concept of Reddit. However, no matter the trend of market volatility index futures or credit spreads, there is not much systematic pressure.
Market ETF options change on March 2nd
The trading volume in the options market reached 33.5 million contracts on Tuesday, 23% lower than the previous average, of which the subscription volume was slightly higher than the sell volume (9:5). The volume of individual stocks and ETF is relatively high, while the flow of futures index products is moderate.
Changes in individual stock options in various sectors on March 2
The most active plates includeFinance, cyclical consumption and basic materials sectors而Medical and communications sectorTrading volume is relatively calm.
Of the 3805 stocks with only listed options, 1171 (31 per cent) closed up and 2548 (67 per cent) closed down. Among the 500 stocks with the highest liquidity, 167 have higher implied volatility and 276 have lower implied volatility on the 30th. The stocks that have detected transaction changes include:$Rocket Companies (RKT.US) $, $General Motors Co (GM.US) $, $Zoom Video Communications Inc (ZM.US) $, $UWM HLDGS CORP (UWMC.US) $和$Target Corp (TGT.US) $等。
Science and technology stock
Industrial stock
Cyclical consumer stock
Financial stocks
Communications Unit
Medical and Health Unit
Energy stocks
Real estate stock
Building Materials Unit
Defensive consumer stock
Public utilities unit
The option tool is flexible and easy to use, and it is considered to be the most perfect trading tool in the financial market so far. small funds can quickly accumulate wealth through accurate judgment using non-linear leverage. large funds can achieve stable returns through the comprehensive application of multiple strategies across bull-bear and shock markets. But we also need to see the buyer's risk of options (ordinary investors are careful to be sellers of options, with limited returns and unlimited losses):
1. Nonlinear huge leverage will suffer huge losses if it is faced with going in the wrong direction.
2. Volatility drops, and the other side may lose money.
3. The state of mind is easy to be out of balance with big fluctuations. :
4. Time is the enemy of option buyer.
5. Stock thinking is serious. Stock thinking is just want to do long, will not short, fall more want to bottom, trap, ignore and so on rebound, and even some people add positions to lower costs, the result is deeper and deeper to zero. If you don't change your mind, it's dangerous to make options.