Friday, April 18, 2025
One thing that I’ve learned in the many years that I’ve traded options is that most investors hate hedging. It’s not the idea of hedging (i.e., protecting a portfolio’s downside) that’s the issue. It’s the cost. Hedging can be expensive over time. Investors generally are not fans of things that are meant to lose money […]
Sometimes, a useful method for finding good trades to make is looking at what other people are doing. For instance, we can easily search for large covered call trades in order to get trade ideas. One interesting covered call trade in iShares MSCI Emerging Markets ETF (EEM) will boost the return from holding the ETF […]
What are puts and calls, and how do options work? Keep reading for these answers and to understand the basic terminology you need to know.
One of the more intriguing aspects of 2021 has been the relatively high levels of expected volatility in the equities markets. The VIX, a widely-used barometer of broad market volatility, has been consistently higher throughout the year compared to its long-term median. Despite the high levels of anticipated volatility, the market hasn’t yet seen that […]
Looking at block trades and unusual options volume can be very enlightening. For instance, a big trade in US Global Jets ETF (JETS) can possibly give us clues towards what to expect for the airline industry in November. By looking closely at what trades hit the tape, you can often determine if a strategist is bullish or […]
With the launch of the first ever Bitcoin ETF… The SEC has legitimized cryptocurrencies. Although the ETF doesn’t buy Bitcoin directly, but rather, the futures of Bitcoin… It still will cause disruptions in the market. In this weekly briefing, I’m going to break down what I see could happen in the broad markets and cryptocurrencies […]
The movie theater industry has been one of the hardest hit sectors following the COVID-19 pandemic; however, cinemas are showing signs of rebounding in recent months as more and more blockbuster movies are released. That being said, the recovery has been slow and erratic and could continue over the foreseeable future. It is no secret […]
Options order flow, particular large or unusual block trades, can potentially help traders predict where a big market move may occur. Large traders will often use options on ETFs in order to take a directional position on a major asset class or industry. For example, using the iShares iBoxx $ Investment Grade Corporate Bond ETF […]
We recently saw a significant amount of action in Global X Uranium ETF (URA). Uranium has become a popular commodity to trade this year as energy prices in fossil fuels have soared. Uranium is often considered a potential stopgap between fossil fuels and renewable energy sources. URA is up nearly 90% this year and at least […]
What’s my favorite moving average? It’s not too volatile… but also the juiciest trends are found in this timeframe. When prices break above it, I’m buying. When it drops below, I’m staying away. Since early 2020, this moving average worked well for getting in and getting out of stocks. We’re in a choppy market so […]
