Volatility

Clouds Gather: Stocks Sag After Microsoft Takes a Hit on Guidance and Boeing’s Earnings Lose Altitude January 25, 2023 10:09 AM   |  

Stocks lost ground in premarket trading as investors considered Microsoft’s less-than-rosy cloud forecast and a surprise loss from Boeing. Having two mammoth companies report such weakness isn’t great news for an already-struggling earnings season.

5 min read  |  Daily Market Update
Traffic Alert: As Q4 Earnings Accelerate, Investors May Slow Down for Microsoft Results January 24, 2023 9:22 AM   |  

3M cut jobs, which could make some investors wonder if China really is on the rebound. Meanwhile, Union Pacific’s weak quarter might get pass due to weather and other operational difficulties it experienced. Microsoft results arrive after the close, and its cloud business will be under scrutiny.

5 min read  |  Daily Market Update
Will a Big Earnings Week for Tech Spark Market Optimism—Or the Opposite? January 23, 2023 9:15 AM   |  

It’s a quiet day for data, but that will speed up soon enough throughout the week with a first look at Q4 GDP and much more. Meanwhile, this week’s tech earnings could indicate where growth sectors are heading.

5 min read  |  Daily Market Update
Propping Up the January Rally: Stocks Attempt a Recovery After a Tough Week for Tech January 20, 2023 9:29 AM   |  

Stock futures moved a bit higher in premarket trading Friday as strong Netflix subscriber gains helped the Nasdaq even as Alphabet cut jobs. Next week kicks earnings season into high gear with expected reports from Microsoft, Johnson & Johnson, Union Pacific, Intel and others.

5 min read  |  Daily Market Update
T-Minus 2 Weeks: As Next Rate Meeting Approaches, Wall Street Wonders if Fed Can Stick the Landing January 19, 2023 9:27 AM   |  

Yesterday’s retail sales data raised concerns about the path of the economy, and hawkish words this morning from an influential bank CEO kicked Wall Street’s negative mood into a second day of lower trading. Fresh, weaker housing data also weighed on stocks early today as earnings season speeds up.

5 min read  |  Daily Market Update
When Bad Means Good: Sharply Lower PPI, Retail Sales Data Send Stock Futures Higher January 18, 2023 9:30 AM   |  

Sharply lower PPI and retail sales data pushed stock futures ahead this morning with a busy day of data to come. Some investors might be right to wonder, though, if we’re seeing a slowing economy—or a faltering one.

5 min read  |  Daily Market Update
Home and Away: BOJ, China and Davos Distract From Bank Earnings, Sending Yields Up, Stocks Down January 17, 2023 9:30 AM   |  

> Volatility and Treasury yields are inching higher this morning amid mixed bank earnings and key inflation data tomorrow. Meanwhile, data from China, a potentially newsworthy Bank of Japan meeting, and Davos now underway could compete for attention.

5 min read  |  Daily Market Update
Brace, Brace, Brace: Markets Turn Lower as Banks Gird for Tougher Credit Environment, Global Risks Ahead January 13, 2023 11:56 AM   |  

Stocks approached the weekend under fresh pressure after four of the biggest U.S. banks reported a mixed set of earnings. Recession worries resurfaced after the World Bank lowered its global economic forecast. The market is closed Monday, so be on the lookout for potential volatility ahead of the long weekend.

5 min read  |  Daily Market Update
Spot On: CPI Report Hits Most Targets but May Not Change Fed’s Thinking Much January 12, 2023 11:19 AM   |  

Stocks took a slight dip immediately following the CPI release amid investor concerns about food and shelter costs. But overall, it was a report unlikely to change the Fed’s thinking too much. Next up: Major banks report earnings early tomorrow, which could keep trading muted today.

5 min read  |  Daily Market Update
Planes Grounded, Futures Aloft: Early FAA Systems Glitch Isn’t Distracting Investors from Data Picture Ahead January 11, 2023 9:12 AM   |  

We’re on the verge of a busy close to the week with inflation data tomorrow and bank earnings Friday, but so far, there’s not been much to trade on. KB Home reports later and could give more insight into the housing market, and China reopening hopes are lifting oil prices.

5 min read  |  Daily Market Update
Waiting for Signals: Stocks Edge Lower Ahead of Fed Speakers, CPI Ahead January 10, 2023 9:57 AM   |  

Slower wage growth started a rally Friday that carried over to Monday. Then two Fed Speakers said they anticipate rates to move above 5% in the battle against inflation. Tuesday’s early drop seemed to reflect that.

5 min read  |  Daily Market Update
Precision Driving: Investors Look to Steer Friday’s Rally Past Tough Forecasts for Q4 Earnings January 9, 2023 9:50 AM   |  

JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo start Q4 earnings season on Friday. We’ll have plenty of Fed speakers and consumer data in the meantime.

5 min read  |  Daily Market Update
A Step Back: Stocks Retreat After Thursday’s Hot Jobs Data Sets the Stage for Friday’s Nonfarm Payrolls Report January 5, 2023 10:08 AM   |  

A day ahead of the critical December jobs report, stocks gave up Wednesday's gains amid headwinds from fresh data and hawkish Fed talking points. Treasury yields are on the rise following Fed minutes, and there aren't any signs of the hot jobs market cooling.

5 min read  |  Daily Market Update
Stocks Up Ahead of Fed Minutes Even as Investors Weigh Salesforce Layoffs, Big-Tech Downgrades January 4, 2023 11:21 AM   |  

Analyst downgrades to Microsoft and Apple and job cuts at Salesforce contributed to Wall Street’s risk-off mood this morning—though stocks did climb ahead of the open. December’s Fed minutes and JOLTS and ISM manufacturing data arriving after the open are likely to shape the rest of the trading day.

5 min read  |  Daily Market Update
Hangover Cure? Premarket Upswing Starts ’23 on a Positive Note—But Watch That VIX January 3, 2023 9:20 AM   |  

A new year begins with the market bracing for data and earnings later this week, including Wednesday’s ISM Manufacturing report and Friday’s Nonfarm Payrolls numbers. Q4 earnings start to move on Thursday with Walgreens Boots Alliance on the calendar.

5 min read  |  Daily Market Update
Market Gets Its 50 Basis Points, but Fed Forecasts a Higher Peak Rate and a Worsening ’23 Economy December 14, 2022 5:01 PM   |  

The market gyrated after the Fed’s 50-basis-point rate hike and economic projections, finishing lower on the day. As investors eyeballed the central bank’s dot-plot of future rate projections, the picture seemed dimmer for Wall Street.

5 min read  |  Federal Reserve
Putting Up a Good Defense: Defensive Stocks & Sectors Investing Strategy November 8, 2022 10:35 AM   |  

A good defense is the best offense, right? It’s sometimes true for investing as well. Learn more about defensive stocks and defensive sector investing.

5 min read  |  ETFs & Mutual Funds
Stock Volatility Indicators: A Handy Addition to Trend and Momentum Indicators November 3, 2022 10:58 AM   |  

In technical analysis, many traders start with trend and momentum indicators. But don’t forget volatility indicators, which track the magnitude of price movements.

5 min read  |  Technical Analysis
Record Rate Hike: After a Fourth-Straight 75-Basis-Point Increase, a Hawkish Powell Takes the Market Lower November 2, 2022 5:11 PM   |  

Our chief market strategist breaks down the day's top business stories and offers insight on how they might impact your trading and investing.

5 min read  |  Federal Reserve
What’s Your Portfolio’s Risk Level? Beta Weighting on thinkorswim® May Offer Clues October 12, 2022 11:46 AM   |  

Traders can use the beta-weighting tool on the thinkorswim® platform to view the overall risk of all their positions as a whole instead of looking at risks of individual assets.

3 min read  |  thinkorswim Platform
Using the Average True Range (ATR) Indicator in Your Trade Exit Strategy July 26, 2022 10:56 AM   |  

The average true range (ATR) indicator could be a new arrow in your quiver of technical analysis tools. Learn how the ATR indicator helps traders set their exit strategy.

2 min read  |  Technical Analysis
What’s a Black Swan Event? How to Spot and Prepare for This Outlier July 12, 2022 11:28 AM   |  

What is a black swan event? Learn about black swan events and how you can attempt to protect yourself and your portfolio from adverse shocks.

4 min read  |  Portfolio Strategy
Market Volatility and Market Inflation: A Balance for Investors June 2, 2022 1:51 PM   |  

Market volatility and market inflation can destroy investment value. Here’s how investors can account for both in their long-term portfolio strategy.

5 min read  |  Portfolio Strategy
Bank CDs vs. Brokered CDs: What’s the Big Difference? March 22, 2022 12:45 PM   |  

CD investing isn’t limited to walking into your local bank branch and opening an account. Learn the potential benefits and risks of brokered CDs and bank CDs.

5 min read  |  Bonds & Fixed Income
Options Trading Strategy to Consider During Earnings Season: Iron Condors October 7, 2021 10:15 AM   |  

Earnings season can create volatility in price movement. Learn how to spot potential options trade candidates by assessing straddle price versus average earnings moves.

6 min read  |  Trading
Portfolio Diversification Redux: Think Like a Trader September 27, 2021 10:15 AM   |  

Diversification isn’t just about stocks, bonds, and cash. When hedging risk for an options portfolio, think price, time, and volatility.

5 min read  |  thinkMoney Magazine
thinkTank: Think Outside the Box September 27, 2021 10:15 AM   |  

When you look beneath the Analyze tab on thinkorswim®, you may find some features you may not have known about.

5 min read  |  thinkMoney Magazine
Vol Whisperer: How to Spot a New Volatility Regime September 27, 2021 10:15 AM   |  

Understanding the nature of volatility regimes and recognizing when it’s shifting could help unlock potential trading opportunities.

3 min read  |  thinkMoney Magazine
Rethinking Risk: Comparing Investment Returns with the Sharpe Ratio August 17, 2021 10:15 AM   |  

Sharpe ratio is a metric that can help you compare investments from a risk-adjusted return perspective. Learn about calculating Sharpe ratios here.

3 min read  |  Trading
It’s a Special Relationship: Intermarket Analysis in the Current Rate Environment August 6, 2021 10:15 AM   |  

Understanding the relationships between stocks, bonds, commodities, and currencies can help you identify economic trends and better manage your investments.

5 min read  |  Investing
Short-Term Trading in Slow Motion: The Swing Trade July 20, 2021 10:15 AM   |  

Want to try your hand at short-term trading? Consider swing trading: holding positions for a few days to try to capture a larger intermediate-term price swing.

4 min read  |  Trading Strategies
Risk Profile Tool: The Option Trader's Travel Companion June 28, 2021 10:30 AM   |  

Learn how the Risk Profile tool in the thinkorswim platform can help options traders visualize different scenarios and make trading decisions a little simpler.

5 min read  |  thinkMoney Magazine
Trade Winds: An Options Strategy Styled For You June 28, 2021 10:30 AM   |  

With many options trading strategies to choose from, how do you find the right one? Consider a three-step process to help with your decision.

5 min read  |  thinkMoney Magazine
Options Straddles vs. Strangles: The Basics of Volatility and Magnitude Strategies May 6, 2021 10:30 AM   |  

Options straddles and strangles are a way for advanced traders to get long or short exposure to volatility (vega), but the volatility needs to be weighted against time decay (theta). Here are the basics.

6 min read  |  Options Trading Basics
Can Protective Puts Provide a Temporary Shield? April 8, 2021 10:48 AM   |  

Protective puts are one way to hedge stocks against a significant price drop. But investors should consider factors such as time decay and volatility.

3 min read  |  Trading Strategies
Got Vol? Trade Around It. April 5, 2021 10:30 AM   |  

Do the headwinds of time decay turn you off from buying single options on volatile stocks? Find out how you may be able to turn the headwinds into tailwinds by trading those stock moves.

5 min read  |  thinkMoney Magazine
Capiche: Why Are You Getting In a Trade? April 5, 2021 10:30 AM   |  

Successful traders have rules and stick to them, whether those rules are based on volatility, probability, technical analysis, or other factors.

1 min read  |  thinkMoney Magazine
Want to Speak the Language of Option Traders? Here’s an Options Trading Terminology Guide March 16, 2021 10:30 AM   |  

Return on capital and liquidity mean specific things in finance. But they can mean something different to an option trader. Read this options trading terminology guide to find out.

7 min read  |  Options Trading Basics
Volatility Ranking: Using IV Percentiles to Put Movement in Perspective February 19, 2021 10:30 AM   |  

Trying to select the right options strategies, strikes, and expirations? Learn how to rank volatility using IV percentiles and see if changes are normal or unusual.

3 min read  |  thinkorswim Platform
What Does the Post-COVID-19 Investing World Look Like? January 13, 2021 10:30 AM   |  

2020 was a challenging year for investors. But 2021 might be a challenge as well—for different reasons. Here’s a look at the opportunities and risks.

5 min read  |  Portfolio Strategy
New Year, New You: Hitting the Reset Button January 4, 2021 10:30 AM   |  

Starting the new year fresh can be a great idea. Despite the drop and pop we saw last year, it may still be a good time to think about resetting your trading strategies and get a fresh start.

5 min read  |  thinkMoney Magazine
Options Building Blocks: Why Should Investors Consider Covered Calls and Cash-Secured Puts? November 23, 2020 10:30 AM   |  

Selling covered calls and cash-secured puts can help investors generate additional income, increase their probability of success, decrease their volatility of returns, and lower their overall risk when compared to buying stock.

5 min read  |  Options Trading Basics
Five Option Strategies for High-Volatility Trading Environments October 6, 2020 12:53 PM   |  

When faced with high volatility, many options traders turn to these five strategies designed to capitalize on elevated volatility levels.

3 min read  |  Advanced Options Strategies
It’s About the Algorithms: Is a Robo-Advisor Right for You? October 2, 2020 10:30 AM   |  

Like most financial advisors, robo-advisors recommend portfolios based on investors’ long-term financial goals, time horizon, and risk tolerance. Because robo-advisors generally use algorithms to make investment decisions, they avoid emotions and generally charge lower fees.

5 min read  |  Investing Basics
Options Volatility Skew: Why Off-Balance Isn’t All Bad October 1, 2020 11:16 AM   |  

How can skew offer insight into market sentiment? Implied volatility between out-of-the-money put and call options is almost always skewed depending on whether there’s panic to the downside or upside.

5 min read  |  Options Trading Basics
Is the FIRE Movement Burning Out? Financial Independence, Retire Early in 2020 August 25, 2020 10:26 AM   |  

The “financial independence, retire early” (FIRE) movement was all the rage in 2018 and 2019, but the COVID-19 pandemic has changed the way we think about a lot of things. Has the upheaval in 2020 changed the desire to FIRE? And how might retirement plans be affected by the current situation?

5 min read  |  Retirement Planning
Facts on SPACs: What to Consider Before Investing in Blank-Check Companies August 20, 2020 10:38 AM   |  

Special-purpose acquisition companies (SPACs) have been around awhile, but they’ve gotten some new attention in 2020. Here’s a look at the mechanics and risks for investors involved in blank-check companies.

5 min read  |  Alternative Investing
Outcome-Based Investing During Market Downturns June 18, 2020 10:30 AM   |  

Are you an investor who follows the daily or weekly ebb and flow of your retirement accounts? If so, market downturns might be a bit unsettling at times. But what if instead of focusing on today’s bottom line you focused instead on outcomes—your progress toward your goals? Here’s how.

5 min read  |  Goal Planning
Facing a Recession and Bear Market? Avoid 3 Mistakes Many Investors Make May 1, 2020 10:30 AM   |  

The escalating coronavirus pandemic that triggered a bear market in U.S. stocks in early 2020 looks to have tipped us into a possible recession. How can you prepare for and invest during a recession and bear market?

5 min read  |  Economic Trends
Bollinger Bands: What They Are and How to Use Them March 23, 2020 10:30 AM   |  

Learn about the Bollinger Bands technical indicator and how it can help identify volatility and overbought/oversold conditions in stocks and indices.

3 min read  |  Technical Analysis
Surfing the Jobs Report: Why It Matters and Strategies for Trading It February 10, 2020 10:30 AM   |  

The monthly U.S. Employment Situation report—commonly called the jobs report—is perhaps the most closely watched fundamental indicator for traders and investors. Here’s why.

5 min read  |  Advanced Options Strategies
What Are Tariffs and Who Really Pays For Them? November 19, 2019 2:48 PM   |  

Tariffs have been part of American economic history from the country’s origins. Are tariffs good or bad for investors?

5 min read  |  Investment Strategies
Ask a Trader: When High Volatility Hits, Should I Switch from Long to Short Options Strategies? November 12, 2019 3:39 PM   |  

Should you switch from trading long options strategies to short options strategies when volatility levels are high? Sometimes prices are high for a reason.

5 min read  |  Options Trading Basics
As You Wind Down the Road: Market Volatility, Risk, and Your Retirement Portfolio October 18, 2019 10:15 AM   |  

All investments experience market volatility, which is why retirement portfolio strategies should focus on allocating assets across investments of different risk levels.

3 min read  |  Retirement Planning
Ask the Coach: This Volatility Is Scaring Me. Should I Be Cashing Out Stocks? October 7, 2019 1:53 PM   |  

When volatility rears its occasional head, some investors consider cashing out stocks. But are there better ways to ride out market volatility? Cameron May explains.

5 min read  |  Trading Strategies
Smart-Beta ETFs: Alternative Portfolio Allocation Beyond Market Cap September 24, 2019 10:15 AM   |  

What is a smart-beta ETF? Explore what qualifies as a smart-beta fund and what systems define this type of ETF.

5 min read  |  ETFs & Mutual Funds
Reaching for Yield: “Vanilla” Investments Can Be Risky, So Know What to Watch August 27, 2019 11:35 AM   |  

In these times of stock market volatility, many investors are looking for yield in fixed income and dividend stocks. However, there’s risk in these investments, too, so know what you’re getting into.

5 min read  |  Portfolio Strategy
Want to Trade War-Proof Stocks? Ways to Aim for Tariff Protection June 17, 2019 11:28 AM   |  

As trade war fears heat up between the U.S. and some of its major trading partners, some investors may be looking for tariff protection. Here are some things to consider as you aim for a “trade-war-proof” portfolio.

5 min read  |  Investment Strategies
Market Doldrums? Five Options Strategies for Low-Volatility Environments April 30, 2019 4:00 AM   |  

When volatility falls, many option traders turn to these five strategies designed to capitalize on depressed volatility levels.

3 min read  |  Advanced Options Strategies
Market Volatility: Can Robo-Advisors Help Avoid Emotional Trading? April 29, 2019 4:00 AM   |  

Trading with your emotions during times of market volatility? Explore whether a robo-advisor may be able to help.

5 min read  |  Investment Guidance
Surf’s Up? 3 Ways to Catch a Wave with VIX and Volatility Products April 9, 2019 4:00 AM   |  

Looking for volatility exposure? Learn about volatility products including VIX options.

6 min read  |  Advanced Options Strategies
Retirees: Is Your Investing Plan Built for Market Volatility? March 14, 2019 4:00 AM   |  

Temporarily protect your retirement against volatility risk. Here are some retirement- planning strategies.

4 min read  |  Portfolio Management
Three Things to Consider for Your Equity Compensation Plan February 7, 2019 4:00 AM   |  

Got stock options? Set goals and have a plan. Here are three steps to consider for your equity compensation plan.

5 min read  |  Stocks & Stock Sectors
Annual Vol Is Nice. What About Tomorrow? January 7, 2019 3:00 AM   |  

Volatility data is focused on the long term. Traders are focused on the short term. There is a way to convert volatility data so it can be useful for the trader.

4 min read  |  thinkMoney Magazine
Tips for Riding Out Volatility in Your Company’s Stock December 21, 2018 4:00 AM   |  

Does volatility worry you when it comes to the stock you've received as compensation? Learn tips to help manage this valid concern.

5 min read  |  Stocks & Stock Sectors
Grow Your Retirement Savings to Keep Up With Inflation November 26, 2018 4:00 AM   |  

Here’s why you need to keep your retirement money growing even when you’re already using it (hint: inflation and longevity).

7 min read  |  Retirement Planning
Basics of Investing in Stocks: What is a Stock? July 31, 2018 4:00 AM   |  

New to stock investing? Learn the basics of stocks, earnings, dividends, and how a stock’s value is determined.

5 min read  |  Investing Basics
Tips for Portfolio Diversification Amid Market Volatility July 2, 2018 4:00 AM   |  

The recent wave of volatility might serve as a reminder of the importance of using a diversified investment trading approach. Here are some tips to avoid possible traps in these choppy markets.

5 min read  |  Margin
Not All Big Moves Are Created Equal: Volatility and Probabilities January 7, 2018 11:00 PM   |  

Using volatility and market statistics is one of many keys to successful stock market trading. Learn how to incorporate them into your investment strategy.

7 min read  |  Options Trading Basics
Earnings Calendar Tool to Help Investors Navigate Earnings Season October 30, 2017 12:00 AM   |  

With the earnings calendar tools available on the TD Ameritrade thinkorswim Platform, you can be in the know when it comes to the earnings season.

4 min read  |  Web Platform
Volanthology World Tour: Foreign Exchange Volatility October 5, 2017 12:00 AM   |  

Learn about the dynamics of foreign exchange volatility, and where to find currency volatility data.

3 min read  |  Forex
U.S. Presidential Election Cycle & Stock Market Performance August 30, 2016 12:00 AM   |  

The U.S. presidential election cycle theory of the stock market says that the market moves based on the year of the president's term. Is there any proof?

5 min read  |  Portfolio Strategy
Reversion to the Mean: Taking Volatility to a New Level July 7, 2016 12:00 AM   |  

Implied volatility tends to be mean reverting. But what does that really mean? Learn how options traders can potentially benefit from monitoring implied volat

4 min read  |  Options Trading Basics
Income Investing with Exchange-Traded Funds: Can It Be Done? March 8, 2016 11:00 PM   |  

ETFs have matured but they’re not done evolving. Morningstar’s Scott Burns urges income-seeking investors to expand their minds and their research.

5 min read  |  ETFs & Mutual Funds
Option Strategy Throw Down: Selling Strangles vs Iron Condors October 7, 2015 8:01 PM   |  

Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.

5 min read  |  Advanced Options Strategies
Market Grudge Match: Enter a Trade Using Volatility or Price? October 1, 2015 6:03 PM   |  

Use volatility to pick an options strategy to speculate on a given direction, rather than to replace fundamental analysis and charts to determine potential.

7 min read  |  Options Trading Basics
Is Market Timing Possible? Try Sentiment Analysis to Get Closer July 5, 2015 8:00 PM   |  

Trying to time the market? Add sentiment analysis to your stock trading approach to help narrow the time horizon around an underlying security’s move.

2 min read  |  thinkorswim Platform
Size Up Option Straddles for a Reading on Earnings Volatility May 20, 2015 8:00 PM   |  

Check out short-term options pricing to gain a sense of how the underlying stock could move around an earnings release. You can track straddles or use the TD

3 min read  |  Options Trading Basics
How “Out” is Out of the Money? Options for Fear and Volatility April 29, 2015 8:00 PM   |  

Out-of-the-money call options may be hard to trade when volatility is low, but there are good opportunities for cheaper options trades during market extremes.

4 min read  |  Advanced Options Strategies
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