Vol411 for Wednesday, August 26, 2020

Host: Joe Tigay, Chief Trading Officer, Equity Armor Investments
  • Broad market rallying today as the VIX Index remains over 22 while the S&P 500 Index continues to climb after all-time highs.
  • The Fed is keeping rates low with intent on inflation and that is showing up in equity prices. Will the earnings be there in 2021? Possibly — but for now, inflation is the current concern.
  • Elevated VIX futures are projected for September — November with September currently over 25, being the most historically negative month of the year. October is at mid-29 with traders betting that volatility will return before elections.
  • The SKEW Index is currently elevated at 146 so people are paying a high premium for those downside protection puts.

To learn more visit Cboe’s website.

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