The hottest Volatility Substack posts right now

Bitcoin ETF options are expected to attract more investors, which may help stabilize its price and reduce volatility over time.
Unlike traditional assets, Bitcoin tends to become more volatile when its price rises, which encourages more buying during bull markets.
The new ETF options will provide a familiar way for institutional investors to access Bitcoin, potentially leading to a significant increase in prices, similar to past market events like GameStop.

Crypto might be an early warning sign for future market troubles. If things go bad in crypto, it could affect the whole economy too.
The introduction of powerful quantum computers raises questions about the security of cryptocurrencies like Bitcoin. If hackers can crack the code, it could lead to serious issues.
Many American consumers and investors are feeling financially strained right now. This situation could lead to bigger problems in the stock market.

The author has a new favorite Japanese stock index position betting on Nikkei outperforming S&P 500 and getting long volatility.
The focus of the article is not on fundamental reasons for the position, but on a unique trading edge.
The content of the post is available only to paid subscribers.

Volatility in the market can actually provide good trading opportunities. When things are uncertain, smart traders can find chances to profit.
Listening to expert traders can be really helpful, especially those who are honest about their successes and failures. It helps build trust and understand the market better.
Election results often change market dynamics, creating unique situations for investors. Keeping track of these changes can be essential for making informed decisions.

It's crucial to understand the credit rating scale of bonds to identify distress in the financial system, as issues in the bond market can quickly impact other financial sectors.
Monitoring indicators like bond spreads, such as the ICE BofA US Corporate Index Option-Adjusted Spread, can help determine the financial system's strength. Lower spreads usually indicate a healthier market.
Using indices like the St. Louis Fed Financial Stress Index offers a comprehensive view of financial market stress, incorporating various metrics like interest rates, yield spreads, and stock and bond volatility.

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Stock market volatility is not solely caused by 'Robinhood investors'; experts' claims are not well-supported by research and basic math
While individual firms have seen increased volatility, overall market volatility has remained relatively consistent, highlighting the importance of looking beyond surface-level narratives
Opportunity cost plays a significant role in firm-level volatility, with investors impacting individual stocks based on trends, emotions, and investment decisions, even if market-wide volatility does not reflect this

The S&P 500 had a very eventful week, starting at 1250 and ending at 1255. There were big ups and downs throughout the week, showing market volatility.
The financial landscape changed significantly, with many investment banks struggling and the government playing a larger role. This shift indicates a major transformation in the market.
Next week is expected to be volatile, with uncertainty about whether the market will go up or down. It's a time to brace for potential wild fluctuations.

The digital asset market has evolved significantly since Bitcoin's inception, with emerging sectors like blockchain infrastructure, on-chain derivatives, DeFi, and NFTs.
Sector correlations, like BTC and ETH, can provide insights into the relationships among different sectors within the digital asset market.
Market volatility varies across sectors, with assets in the Decentralized Finance sector experiencing the highest average volatility in 2023.

When ahead, play conservatively; when behind, play with more volatility
Understanding and utilizing volatility is important for wealth-building strategies
Rebalancing is a key strategy to manage exposure to volatility in an investment portfolio

Options are becoming a key part of trading in crypto. They help traders manage risks, express their views on price changes, and understand market sentiment better.
The use of Bitcoin options has surged significantly, showing that more people are getting involved in options trading. Most of the activity happens on the Deribit exchange, which is quite popular among traders.
Market positioning through options shows a bullish outlook for Bitcoin, while Ethereum has a more mixed sentiment. This means traders are more confident about Bitcoin's future price than they are about Ethereum's direction.