The Kraneshares CSI China Internet ETF (KWEB) is a popular ETF for options trading with 120,000 contracts traded per day on average. KWEB can be volatile but it has rebounded significantly from November of last year. Last week, a trader purchased over 20,000 of what appear to be bullish call spreads in KWEB March options. […]
Dividend Investing
A Reverse Stock Split That Actually Works
A reverse stock split usually occurs when a company in some sort of financial trouble is in danger of being delisted from the stock exchange. Because of the negative connotation, I was surprised to see, on January 20, business development company Oaktree Specialty Lending (OCSL) announce a 1-for-3 reverse stock split. A subscriber wrote in […]
Is Google Set For A Rebound?
2022 was a tough year for internet search giant, Alphabet (GOOGL). Could the share price recover in 2023? At least for the next 3 months, one trader or fund thinks the stock has over 10% upside potential. The trader placed a large block of covered calls, which allows for about $12 of upside in the […]
How to avoid big drawdowns in your portfolio in 2023
Last year, if you held your stocks… You’re likely sitting on double-digit losses over a 12-month timeframe. Drawdowns in your portfolio can be crippling to your future wealth and income. If you lose 50% of your portfolio… it requires a 100% return to get back to even. As you can imagine, losing 50% is much […]
A Recession-Proof Stock With a 6% Yield
Utility stocks are historically seen as dull but dependable. After all, they have assured demand despite limits on profitability due to heavy regulation. Investors also see these stocks as regular dividend payers—bond proxies, in effect—with investors confident of solid income streams, leading to low but highly reliable total shareholder returns with relatively little capital risk. […]
Why this is the easiest time to invest in 5 years
For the last 5 years… with low interest rates… the only way to make money was investing in stocks. As you know, stocks have been volatile for the last few years. …big drop from Covid… …stocks rocket back… …equities peak end of 2021… …bear market in 2022 (and ongoing). But, right now, you can earn […]
Is Carvana The Next Big Meme Stock?
There wasn’t a lot of meme stock action in 2022, but 2023 has been a different story so far. Bed Bath & Beyond (BBBY) has seen plenty of meme options action, and so has Carvana (CVNA), which appears to be the latest choice for meme stock traders. On a huge up day for the stock […]
Is This The End For BBBY?
Beleaguered retailer Bed Bath & Beyond (BBBY) was once a favorite among meme stock traders. But just last week, the company expressed doubt that it will be able to continue operating without filing bankruptcy. The stock price dropped 25% on the news, falling under $2 a share. Most options action on the day appeared to […]
Stage 2 of 3 for this bear market just began
Bear markets tend to move in 3 stages. I believe we just entered stage 2 (yes, only stage 2 at this point!). There’s one US economic chart I’m looking at today that verifies what I’m telling you. Every Thursday, I share weekly videos like this for free. This video is under 3 minutes so it’s […]
Surprise stock that could shoot up 100% in days
We’re in a rapid economic tightening environment right now with the Federal Reserve pushing up rates. However, we haven’t seen company earnings hit that hard yet. But, I believe once we see worsening economic data, the Fed will loosen economic policy. When they do… I found a surprising ‘tech’ stock that could shoot up 100% […]