Wednesday, November 27, 2024
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 […]
Options are commonly used as hedging instruments, especially options on indexes and ETFs. The iShares MSCI EAFE ETF (EFA) is a popular asset allocation ETF which invests in stocks in developed countries ex US. As such, it makes for a good product to hedge with (using options), since it tracks the global equities market fairly […]
Last week was a tough one for social media company Snap (SNAP), which missed badly on guidance. The company warned of challenging macroeconomic conditions ahead and the stock dropped over 40% the next day. The following day, the stock gained 10%, and a large investor bought 10,000 January SNAP calls. This seemingly very bullish trade […]
It doesn’t take much time on Google before you find headlines like these: The Last Thing the Polarized US Needs Is a Spike in Food Prices and a Collapse In 401(k)s… It’ll Probably Get Both (source) Financial expert urges caution as $7T stock market slump sends 401(k)s tanking and some joke their retirement accounts are […]
Just when you thought it was safe to go outside, monkeypox pops up. “Doctors warned that numbers will rise significantly as the virus spreads through Europe and as far as the U.S., Canada, and Australia. Spain now has the highest number of infections, outside places in Africa where the virus is endemic, with more than […]
2022 has certainly brought about a change in market sentiment. No longer favored are the “to the moon” technology companies boasting about how they were “disruptors” with fast growth. To say the least, many of these firms were big on promises, but delivered few real results. Back into favor are the companies almost forgotten by […]
Last week, I shared an opportunity in the cereal space that quickly got smacked down by the market. We saw a bit of a bullish jump back to all-time highs on Tuesday. But, I breakdown what happened here. More importantly, I dive into what this might mean for the overall market and your portfolio. Is […]
With my conservative investment strategies, I do not have much reason to worry about the current stock market correction. I know that if I accumulate dividend-paying shares for cheap while others are selling, my income and wealth will be much greater when the market recovers. And it always recovers. I am, however, concerned about a […]
Wall Street analysts would have you believe that the global supply chain problems will be over with soon. Spoiler alert: they will not. We have many months before the supply chain issues abate. The demand for physical goods that began during the pandemic only highlighted the infrastructure shortcomings that could take years to fix. Investors […]
It was the most challenging week in recent memory for blue chip retailers, with inflation and supply chain constraints hurting earnings and scaring away investors. Options action was mixed in Consumer Staples Select SPDR ETF (XLP), the leading retail sector ETF. One massive put spread that traded in XLP options during the week appears to […]
