Friday, November 22, 2024
Oil has been on a tear this year, both due to concerns over inflation and also as as a result of high demand/low supply dynamics. Owning oil stocks has generally been a winning trade in 2022, but what if the trend reverses? One smart way to hedge oil exposure is by purchasing puts on an […]
Dear Investor, As technology stock investors rotate out of money-losing, used-to-be growth stocks, focusing on dividend growth should serve investors well in these volatile times. Two newer ETFs, offering both current yield and potential dividend growth, may be just what investors are looking for. With a dividend growth strategy, dividend income provides a current cash […]
Dear Investor, The recent stock market declines have many investors fearing a market crash, such as the 2008 – 2009 bear market. Back then, the major stock market indexes dropped by more than 50%. As I see what is happening in the markets, this recent pullback feels more like 2018. If I am correct, the […]
The market may have been selling off last week, but it didn’t stop gold miners from catching a bid. In fact, VanEck Gold Miners ETF (GDX) was up over 7% one day last week when one of its major component companies posted better than expected earnings. GDX traded over 300,000 options that day, with 76% […]
This week, I’m watching an ETF in the mining space. For the past year, it’s been basing after breaking out of a multi-year resistance point. I believe we could see nice upside in it within the next few months. As the markets as a whole are in turmoil… mining stocks are an interesting place to […]
Dear Investor, Last week, the stock markets were shocked to discover from the Federal Reserve that interest rates might actually move higher this year. Too many years at near-zero interest rates have corrupted the investing process. While we should welcome higher interest rates, getting there won’t be painless. Investors should prepare for more stock market […]
Dear Investor, While the broad stock market indices remain at near-record levels, there are sectors of the market that have dropped into correction or even bear market territory over recent months. So while income-focused investors, such as my subscribers, continue to generate high-yield income, investors focused on more aggressive stock trading are feeling the pain. […]
Covered calls can be an excellent way to improve returns while holding ETFs or other index products. For instance, a trader recently place a large covered call trade in the iShares Russell 2000 ETF (IWM). The trader purchased one million shares of IWM while simultaneously selling 10,000 calls that expire in two weeks. This strategy […]
The popular Cathie Wood ETF, ARK Innovation ETF (ARKK), continued its run in unusual options trading territory last week. ARKK is a popular speculative stock ETF that holds a lot of the buzzworthy names in the tech world such as TSLA, ZM, and COIN. One interesting trade from the week was a very large call […]
Last week, a highly unusual amount of options action occurred in iShares TIPS Bond ETF (TIP). TIP is a popular ETF for investing in TIPS bonds, which are treasury bonds that are indexed to inflation. In other words, as inflation goes up, these bonds go up. While the ETF has $38 billion in assets, it […]
