Trade of the Week: Small Caps

Trade of the Week: Small Caps

The most popular way for investors to trade small caps is through the iShares Russell 2000 ETF (IWM).  IWM averages nearly 30 million shares traded per day, and over 750,000 options. Last week, a large fund or trader placed a block of nearly 50,000 puts in IWM that expire in October. These far-out-of-the-money puts could […]

Earn Income Forever – Even if the Stocks Change

Earn Income Forever – Even if the Stocks Change

We’d all like to just be able to buy a stock, hold it forever, and have all our problems go away. I’d like that too. In fact, that’s my goal with my Dividend Hunter service. There, I look for high-yield investments that can generate income for years, preferably forever. Unfortunately, the markets and the economy […]

This Lithium Stock Is Up 120% and Could Run Higher

This Lithium Stock Is Up 120% and Could Run Higher

By now, everyone has heard how the shortage of semiconductors has constrained production from automakers. Well, move over semiconductors, now the lack of lithium supply threatens to hold back the entire electric vehicle (EV) revolution. And just months ago lithium carbonate prices high all-time highs. Some prices for the key metals used in batteries for […]

This Unexpected Stock is the Real 5G Winner

This Unexpected Stock is the Real 5G Winner

Ever since the onset of the pandemic, one consistent characteristic of the global economy has come to the fore again and again: shortages of physical goods. The latest shortage to rear its head is a worldwide shortage of fiber-optic cable, driving up prices and lengthened product delivery times and endangering telecommunications companies’ ambitious plans to […]

These Preferred Shares May Be About to Double

These Preferred Shares May Be About to Double

Back in March, investors in the Cedar Realty Trust (CDR) preferred shares went into an uproar (and selling mode) when the company agreed to be sold to Wheeler Real Estate Investment Trust (WHLR). The deal closes next week, so it’s a good time to revisit the investment potential of the CDR preferred shares. Because I […]

What’s The Reasoning Behind This Massive Energy Trade?

What’s The Reasoning Behind This Massive Energy Trade?

Unusual options activity placed Energy Select Sector SPDR ETF (XLE) into the spotlight last week. It turns out a massive options trade of 150,000 contracts traded in a spread, with about $16 million of capital required. This one trade accounted for nearly half the options traded on the day. It appears the position may be […]

Trade of the Week: Emerging Market Bonds

Trade of the Week: Emerging Market Bonds

The iShares JP Morgan USD Emerging Market Bond ETF (EMB) is an asset allocation fund for those wanting exposure to emerging market government bonds. The ETF pays a reasonable dividend but it doesn’t generally move all that much. A well-capitalized trader is likely trying to boost returns on the low-volatility product by utilizing a covered […]