Market Conditions7 min
How Inflation Data Moves the Options Market
Every month, the Bureau of Labor Statistics releases the Consumer Price Index (CPI) report — and options markets respond in a predictable two-phase pattern.…
Bernardo Rocha
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Market Conditions
Market Conditions7 min
What Is the Yield Curve and How It Affects Options Traders
The yield curve is a graph that plots interest rates on U.S. Treasury bonds across different maturities — from 3-month bills to 30-year bonds. Its shape tells…
Bernardo Rocha
Market Conditions6 min
Why Copying Hedge Funds Rarely Works for Retail Investors
Copying hedge fund trades rarely works for retail investors because by the time the data becomes public, the trade thesis has already played out — often in the…
Bernardo Rocha
Market Conditions7 min
What Is the Options Market's Implied Move for a Major Event?
The options market's implied move for a major event is approximated by dividing the at-the-money (ATM) straddle price by the current price of the underlying.…
Bernardo Rocha
Market Conditions8 min
How Rising Interest Rates Affect Options Pricing
Rising interest rates increase the value of call options and decrease the value of put options. This effect is measured by rho — the options Greek that…
Bernardo Rocha
Market Conditions8 min
How to Trade Options Around Fed Announcements
Trading options around Federal Reserve announcements requires understanding one core pattern: implied volatility rises in the days before the announcement and…
Bernardo Rocha
Market Conditions8 min
What Is a Gamma-Neutral Position in Options?
Introduction A gamma-neutral position is an options portfolio constructed so that its net gamma is close to zero. When gamma is near zero, the position's delta…
Bernardo Rocha
Market Conditions8 min
How to Use VIX Futures for Options Strategy Planning
Introduction The spot VIX tells you where implied volatility is right now. VIX futures tell you where the market expects volatility to be in the future — and…
Bernardo Rocha
Market Conditions10 min
What Is Gamma Flip and How It Affects Market Direction
The gamma flip is the price level at which dealer gamma exposure crosses from positive to negative. Above the gamma flip level, dealers act as market…
Bernardo Rocha
Market Conditions10 min
What Is the Expected Move Formula in Options?
The expected move in options is the market's estimate of how far an underlying asset will move — up or down — by expiration. It is calculated directly from the…
Bernardo Rocha
Market Conditions9 min
How to Trade Around CPI Data as an Options Seller
CPI reports move equity markets and spike implied volatility in the hours before release, then produce IV crush after the number is published. For options…
Bernardo Rocha
Market Conditions10 min
How FOMC Meetings Move Options Markets
FOMC meetings move options markets in a predictable pattern: implied volatility rises in the days before the Federal Reserve announcement as traders buy…
Bernardo Rocha