How to tell when this bull run is done

Discussion in 'Options' started by Matt_ORATS, Apr 15, 2020.

  1. ironchef

    ironchef

    When IV starts to go up you anticipate market is going to break, isn't that a leading indicator?
     
    #31     Apr 17, 2020
  2. %%
    I have gotten several check$ in one day -OK/LOL;
    but once a week or more is fine also
    WOW, WMT warned us hen eggs would increase+ jumped up about 100% in one week/$2.00+/. But I bought 50 lbs of chickenfeed + 4 little hens=practical pets...……………………………………………………………………………………………………………………………………..:caution::caution::D:D:D:D:D:D:D.
     
    #32     Apr 17, 2020
  3. Sekiyo

    Sekiyo

    No because you can clearly see the market is about to break. That’s why IV is high. Options traders can’t predict surprises.
     
    #33     Apr 17, 2020
  4. TheBigShort

    TheBigShort

    Normal univariate distribution does not mean random. Random means to chose without thought. For example - you randomly selected what underwear to put on this morning.

    If we monitor which underwear you put on every morning over let's say 100 days, we can build distribution to give you a probability of what you will put on tomorrow.

    Distributions describe the data. So depending on your data you would have different distributions. Continuing with our example above - If you have 9 different underwear of which all are different colors. Then the chance of you picking a blue one today will be the same as yellow, red or green. This would give us a uniform distribution. For stocks, we have a univariate distribution with fatter tails (also called excess kurtosis and skew).

    I thought I would clear the air on that one. Univariate distribution != Random
     
    #34     Apr 19, 2020
    RubberBand likes this.
  5. ironchef

    ironchef

    Thank you @TheBigShort for the clarification. I always appreciate your comments.

    This is what happened when a layperson tried to explain statistics. Clearly out of my league. :(
     
    #35     Apr 19, 2020
  6. Sekiyo

    Sekiyo

    Univariate is one variable.
    If the only measure took for a coin flip,
    Is actually the outcome of the flip (X) then YES,
    It’s one variable with two outcomes (Head, Tail).

    Random means 1/n (n as outcomes)
    If a coin has 1/2 for head and 1/2 for tail,
    It’s random because outcomes are equally likely.
     
    #36     Apr 19, 2020
    murray t turtle likes this.
  7. Matt_ORATS

    Matt_ORATS Sponsor

    Watch the implied volatility, now back over 40% for SPY. If IV holds there, that could spell trouble for the market.[​IMG]
     
    #37     Apr 21, 2020
  8. %%
    Some maybe front running sell in may=today.
    Good time to take some UPRO profits----- I don't mind getting paid early on turnaround tuesday
     
    #38     Apr 21, 2020
  9. Sekiyo

    Sekiyo

    You’re late buddy
     
    #39     Apr 21, 2020