Thursday, April 5, 2012

Aqumin Volatility Newsletter–04/05/2012 – $AIG

A Little Irony

How the worm turns. After 20 years+ in the securities business it never ceases to amaze me that if you wait long enough (or can hold out) things can turn around. On a day when the latest Euro story threw cold water on our volatility crushing rally the big winner was, wait, AIG. Oh well…

Take a look at my AlphaVision™ for Bloomberg VWAP Landscape built by Aqumin’s Jason Javarone. This is my favorite way to watch daily activity. While I have up the major indexes I find that this landscape tells a better real time story in that stocks trading above VWAP show momentum higher (stocks on the bottom show negative momentum). At the end of the day (Wednesday) this is what a Sub Industry landscape looked like. These are most of the stocks that trade options and if they are green they are also up on the day. If they are dark green they are closing up 5% above daily VWAP. This is a great way to get market depth and way beyond what you can glean from traditional 2D heat maps.

4-5-2012 9-39-32 AM

On a day when the issue is really dominated by credit (or lack of easy credit for the Spanish) it is refreshing to see where money is actually flowing. It is flowing into the husk of the company that nearly took down the financial system. Also noteworthy in the news is that the big jet leasing facility, ILFC, a part of AIG, is getting better rates than the sovereign nation of Spain. Maybe AIG is not such a bad bet anymore and even Uncle Sam might break even on it.


Read more from Andrew at Option Pit

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