Sunday, December 22, 2024
As expected, the Federal Reserve (Fed) raised rates in it June 15th meeting. Until then, the assumption was that the Fed would incrementally increase rates by 50 basis points (bps) at the next handful of meetings. However, after the hot consumer price index (CPI) number the week prior, the Fed was pushed into a more […]
The hot consumer price index (CPI) number last Friday has caused major damage to the equity markets. Volatility has remained elevated. There seems to be no relief in sight regarding the inflation numbers that we are seeing across industries—and, most importantly, in our daily expenses. The Federal Reserve will do what it can to increase […]
Inflation is hitting all of us pretty hard. The cost of living is rapidly increasing—most notably, we have seen gas prices increase substantially over the last year. While gas prices are the headline, consumers are being hit with rising costs everywhere. Food, rents, housing prices, gas prices, heating oil. It’s everywhere. That list doesn’t even […]
I’m continuing to pound the table on the idea of selling options to generate income with volatility at its current level. The Cboe Volatility Index (VIX) continues to hover around 30, which is creating very interesting opportunities in options. Most everyone owns stocks. Therefore, the risk we all share is that the equity market could […]
Selling puts on the Proshares Ultra VIX Short-Term Futures ETF (UVXY) is one of my go-to trades when implied volatility is high and I think it will stay elevated in the near term. UVXY is supposed to correspond to 1.5x the performance of the S&P 500 VIX Short Term Futures Index. The short of it […]
Wow, what a week! For those whose portfolios are simply filled with long stocks, this has been a disastrous time. But for those who are swimming in cash, this is a great opportunity to make even more money by selling some options to take in the lofty premiums being priced into options due to fear […]
One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor. An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss. A common […]
