Volatility

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.

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.

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.

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.

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.

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.

> 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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.

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.

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

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.

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

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

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

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

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

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

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.

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

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.

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.

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

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.

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

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.

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.

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.

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.

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.

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

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.

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.

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?

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.

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.

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?

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

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.

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

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

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

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.

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

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.

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.

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

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

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

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

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

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.

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

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

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

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.

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

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.

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

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?

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

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

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

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

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.

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

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.