Mike Milligan explains how rising VIX signals amid market declines create short-term volatility whipsaws. He tells advisors to show clients with concentrated stock positions the current implied volatility levels, tying it back to their financial plan's risk-management section.
Yesterday. Here's the planning application. When the VIX moves up on a broad market decline, option sellers are repricing risk. Protection got a little more expensive yesterday, not dramatically, but the 2-day sequence, Thursday's collapse, then Tuesday's rebound, is exactly the volatility whipsaw that shows up in a written financial plan under the risk management section, and the one-of-a-kind financial plan that shows up in the investment section. For advisors, this is the week to update your concentrated stock clients on where implied volatility sits. Not to sell anything, guys, just to show them you noticed. That is the difference between an advisor and a professional. Those clients who are listening to this, the whipsaw volatility has been something we have been accustomed to over the last number of years since COVID We're watching it closely here on the One of a Kind Financial Show daily.
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
