"Nothing will make volatility skyrocket unless the market collapses again, but there doesnt seem to be any danger of that happening now," says Larry McMillan, editor of Option Strategist.
They are volatile, and we try to make that volatility work for us and not against us.
A breakup could make recent volatility look like a day at the beach.
Kathleen Brooks, the research director at the currency experts Forex.com, said: "The sell-off in Chinese stocks in recent weeks makes the volatility in European and US indices look like a walk in the park".
This has hurt their government finances and, more importantly, has made price volatility worse by obstructing the route from higher prices to weaker demand.The distortions that governments introduce are even more evident in foodstuffs, and this time the culprits are rich countries, particularly America and Europe.
(For traders with a fair amount of skill and willingness to embrace risk, he suggests other alternatives, like shorting the market or making bets on volatility).
That results in a fund portfolio with less volatility, making for an even better investment than any of the funds on their own.
She warned businesses and consumers to expect a period of volatility, making it difficult to determine how well the economy is performing.
A well-diversified portfolio should help moderate the swings in your holdings, making the current volatility less traumatic.
Neurocrine Biosciences has already reported its Q2 earnings, reporting a net loss for the period, making the implied volatility move and the call positioning very intriguing.
Today, options on the Nasdaq 100 Index (nasdaq: NDX) and the Natural Gas Index (amex: XNG) also have low volatility, making them attractive as well.
