Market Measures

Monday – Friday | 9:00 – 9:20a CT

Sell in May and Go Away?

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

There is a popular belief that seasonality affects the market and causes differences in market performance of different months. This belief seems to be reasonable, as the average monthly return of SPY varies throughout the year.

However, in order to check if the differences are significant, we also need to consider the standard deviation of the monthly returns.

The result shows the average monthly returns of SPY based on standard deviation of different months are not significantly different from zero, which means that there is no significant difference between the market performance of different months. So, we can conclude that the seasonality effect is an intuitive but incorrect belief.

Market Measures More installments

See All »

Latest tastytrade Videos As of October 16

Most Shared From the last 30 days