The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about why we don’t filter trades for Trump tweets and neither should you. This is actually a really interesting topic and I am so glad that the president continues to have these random off-the-cuff tweets because this is exactly what I’ve talked about for over 10 years, this idea that black swan events and unknowns are a constant and reoccurring phenomenon in the market, this idea that no matter what the catalyst is, what the actual thing is that creates a black swan or an unknown in the market, these will continue to show up in the future. Before president Trump, we never worried about what a president was going to say on Twitter. Now, we worry about what a president is going to say on Twitter and this creates a level of unknown or uncertainty that causes option premiums generally to go up and implied volatility expectations to still and continuously overstate the expected move. This i