Fast Money Blog- 1/16/26

This week we saw the return of volatility in shares of Amazon.com (AMZN), which moved between $2 and $5 per day. 

When it comes to volatility here’s what you should know:

• Volatility occurs when Wall Street institutional traders buy or sell shares in 500,000 blocks of shares or more, each day. 

• When institutional traders are very active, call option Premiums get larger.  This is frequently referred to as a volatility swell.   On the other hand, when institutional traders are less active, volatility declines. 

• Historically, high periods of volatility are from January 10th through August 14th  AND from September 12th through December 14th. 

• Historically, low periods of volatility are from August 15th through September 11th AND from December 15th through January 9th. 

If your goal this year is to be an excellent volatility trader, make sure to keep the above information in mind.

Remember it’s the institutional traders around the world who really move the market, not you or I.

Tyrone Jackson

The Wealthy Investor