Shaik Hetpal (The Kobeissi Letter – strategist)
Market strategist sharing U.S. index updates, macro narratives (rates, BoJ spillovers), and rotation commentary.
Stock Volatility Gap Hits 2008 Levels, Options Soar
Market stress is surging at a rapid pace: The spread between the average 9-month volatility of S&P 500 stocks and the S&P 500 index's 9-month volatility is up to 18 points, the highest since 2008. This spread has DOUBLED over the last 2 years, suggesting many market sectors are experiencing severe volatility despite the broader market appearing relatively calm. This also means options on individual stocks are far more expensive relative to index options than at almost any point in history.
OIH and XLE Surge; Oil Rally Just Beginning
🚨 UPDATE: On February 2nd I told you to buy OIH and XLE. Since then: OIH: +14% XLE: +10% Crude oil: 7-month highs And in my opinion, we’re just getting started. Here’s why I’m not selling yet: