If options traders are correct, stocks are in for a wild ride in February. Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump. In that time, investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22, according to Brian Bier, head of sales and trading at Macro Risk Advisors, an options brokerage. The options cost roughly 49 cents per contract, Bier said. By comparison, the CBOE Volatility Index VIX, -2.69% was at 11.16 in midday trading
The Trump rally is on its last legs, and according to one strategist, that means stocks could see a huge drop in the coming months. Meanwhile, the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJITR) continues to hover just under the 20,000 level, underscoring what some analysts believe is a market that's starting to look too frothy. "The U.S. market, we feel, was already overvalued going into the election," Mark Eibel, director of client investment strategies at Russell Investments told CNBC's "Futures Now" last week.
ThinkstockIn 2015, the Internal Revenue Service audited only 0.84% of all individual tax returns. So the odds are generally pretty low that your return will be picked for review. That said, your chances of being audited