Russell 2000 (^RUT)

Research on Russell 2000 (^RUT)

Keep Calm and Short the VIX

Understanding VIX behavior is crucial for traders. The VIX often reverts to its mode rather than its mean, making the mode a more practical target for trading. After the recent historic volatility event, the VIX has started to calm, suggesting a quieter September. With a focus on shorting VIX options, this article provides insights into capitalizing on the post-election volatility crush and the unique behavior of VIX European expiration options.

The Silver Lining to Last Week’s Market Rollercoaster: Small Cap Outperformance

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The Silver Lining to Last Week’s Market Rollercoaster: Small Cap Outperformance

Last week’s spike in volatility saw the VIX hit the $16 mark and significant market drops, but signs suggest a healthy sell-off and rotation from Tech. The VIX curve remained in contango, indicating an orderly market despite the sell-off. With earnings season approaching, index volatility typically decreases. The Russell 2000’s outperformance further supports a positive outlook, signaling resilience among smaller companies. Overall, the current market structure and strong economic fundamentals suggest that volatility may remain subdued.