She’s a new truck driver, only six months into the job, exploring the vast highways of the United States. Inside her truck, she’s starting to find her rhythm, feeling the sense of freedom and control that comes with the open road. Her cab is decorated with small touches from home—a photo of her family, her favorite book, and a tiny plant on the dashboard that brings a bit of life to her mobile space. Outside the truck, however, she still feels out of place. As a young woman new to the industry, she often encounters looks of surprise or doubt from other drivers and people she meets along the way. But she’s determined to prove herself, gaining confidence with each successful journey. For her, “In the Truck vs Outside of the Truck” is about discovering who she can be, both behind the wheel and in the larger world that awaits outside her cab.
Real-Transparency
Exchange-traded option markets, with live quotes and tradable prices, are more transparent than many related markets. This affords visibility into related markets that are more opaque, including securities lending, dividend forecasts, and credit markets.
Forward-Thinking
Options prices reflect forward-looking, market-based views of volatility, including the short term such as earnings announcements, and the long term such as company and sector forecasts and the anticipated fundamental credit worthiness of a firm.
The listed options markets are a rich source for market expectations. With their liquidity and transparency, the options markets provide a forward-looking measure of a number of market conditions – from borrowing costs and dividend expectations, to the relationship between equity and credit markets.
Cboe Hanweck Trading Indicators deliver a unique set of derived analytics in a concise and readily accessible real-time data feed that can inform trading and risk decisions beyond options trading.
Market Expectations
Options prices move quickly in response to participant expectations and behavior. For example, market makers in options must adjust pricing in response to borrow pricing they receive from the collateral markets, or they face arbitrage or hedging losses as they transact with other informed participants. Similarly, as expectations of future dividends change, it is quickly reflected in the options markets.
