Tuesday, October 13, 2015

Highest Ever Likelihood Of A Black Swan Event Taking Place Over The Next 30 Days

"With continued uncertainty in global markets, today King World News is pleased to share an extraordinary piece warns that traders have now priced in the highest ever likelihood of a black swan event taking place over the next 30 days.  This piece also includes a key illustration that all KWN readers around the world must see.
October 13 (King World News) – Jason Goepfert at SentimenTrader:  “The SKEW Index has soared to a new all-time high.  This means that S&P 500 options traders are pricing in the highest-ever likelihood of a “black swan” event over the next 30 days (see chart below).
KWN SentimenTrader I 10:13:2015
According to calculations from the Chicago Board Options Exchange, the current reading indicates an approximately 15% chance of a 2 -standard-deviation move over the next month (that probability was under 6% as recently as September 30).  The previous high in recent years occurred on September 18, before the S&P tumbled more than 9% over the next few weeks.” 
at http://kingworldnews.com/highest-ever-likelihood-of-a-black-swan-event-taking-place-over-the-next-30-days/

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