Nokia sells units to Microsoft

On 09-03-2013 Microsoft MSFT, announced that it is buying the handset units from Nokia, NOK. Nokia stock moved up over 16 standard deviations on the news. The chart below is a daily chart of Nokia, the red bars show the price move in standard deviations. The line on the bottom is the IV/SV ratio, notice how the implied volatility rose dramatically in the days prior to the announcement, a signal that something was happening.

NOK 09-03-2013

Implied Volatility Rise in Oil Options

The chart below shows the US oil fund, USO. It is a daily chart the line on the bottom shows the rise in the implied volatility of options on USO. The situation in Syria has led to talks of an oil spike and the oil options are getting expensive.

USO 08-31-2013

VIX Spike

On Tuesday August 27th, 2013 the VIX spiked due to escalating tensions in Syria. Below is a chart of the spot VIX and the VXX, which is the VIX ETF based on the short term futures contract. The blue line show the correlation between VIX and VXX.

VIX vs VXX 08-27-2013

FB Facebook after earnings

The chart below shows FB, Facebook stock following a better than expected earnings report. The move up the next day, July 25th, 2013 was over 20 standard deviations. Facebook closed on Wednesday at $26.51 and opened on Thursday at $33.54.

FB post earnings

FNMA Fannie Mae Price Spike

Talk about Washington political risk, FNMA, Fannie Mae opened the week at $3.53, hit a high of $5.44 and on Friday so far has hit a low of $1.34!

FNMA daily 05-31-2013

Japan Nikkei Index drops 7.3%

Chart below of the EWJ, the Japan ETF, the Nikkei dropped 7.3% a move of over 7 standard deviations, a fat tail event.

EWJ Nikkea drop 05-23-2103

Dow 15000

The Dow Jones Industrial Average goes over 15,000 for the first time on May 3rd, 2013 following a decent jobs report.

Dow 15000, 05-03-13

Associated Press Twitter account Hacked

The chart below is a two minute chart of the SPY on 04-23-2013. The Associated Press’s Twitter account got hacked and someone tweeted that the White House had been bombed. The Dow Jones Industrial Average dropped 145 points and recovered in about 7 minutes. The SPY is shown below, on a two minute chart the down move was over 30 standard deviations as shown on the red bar. This was an excellent example of the kind of market volatility that one tweet can produce, even though it turned out to be false.

SPY 04-23-13 AP Twitter hack (1)

Netflix Stock Post Earnings

The chart below is Netflix, NFLX, stock after their earnings report yesterday. The up move was over 7 standard deviations as shown on the red bars below the price chart. The line on the bottom is the ratio of the implied volatility to the statistical volatility which has dropped to 204.30 post earnings. We discussed NFLX on my radio show, Ken’s Bulls and Bears report with Jeffrey Dow Jones a couple of months ago.

NFLX 04-23-2013

Chart of the day IBM

Today’s drop in the price of IBM following a weaker than expected earnings report. Currently the down move is over eight standard deviations as shown on the red bar. The line below is the IV/SV ratio which is up to 208.65.

IBM 04-19-2013


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