Wednesday, November 27, 2024
Selling puts on the Proshares Ultra VIX Short-Term Futures ETF (UVXY) is one of my go-to trades when implied volatility is high and I think it will stay elevated in the near term. UVXY is supposed to correspond to 1.5x the performance of the S&P 500 VIX Short Term Futures Index. The short of it […]
Several key retail stocks sold off sharply last week as inflation and supply chain issues took a toll on earnings. Target (TGT) was hit the hardest and dropped 25% in a day. Costco (COST) and Walmart (WMT) also saw their share prices decline. Options action was mixed on TGT, with some options traders potentially looking for a […]
For investors, energy companies have been the bright spot in a very dark 2022 stock market. The Energy Select Sector SPDR ETF (XLE) is up 43% year-to-date, while the broad-coverage (including energy) SPDR S&P 500 ETF (SPY) has dropped by 18%. Energy companies divide into three sectors: upstream, midstream, and downstream. So far this year, […]
The Russian invasion of Ukraine has awakened other countries in Europe, which now realize they must recalibrate their security strategies and increase defense spending. Even Germany, despite the pacifist strategy it has followed since the end of World War II, said it would sharply increase its spending on defense to more than 2% of its […]
Most sectors of the market have been creamed recently… But, underneath the surface, I see a food stock that is about to break out to all-time highs. They pay a nice dividend… More importantly… While other food stocks, like Kraft-Heinz (who are way off from all-time highs)… This one stock is set to break out. […]
Investors may want to use the pullback in electric vehicle stocks as an opportunity. Global leaders want millions of EVs on the roads and automakers are abandoning combustion engines for electric vehicles. On a global level, sales are only accelerating. In the U.S., as Car and Driver notes, “American car shoppers seem to have discovered […]
When the stock market goes into a bear market, it drags down almost every stock. Sound, profitable companies see their shares driven down right alongside the perhaps more deserving stocks that may have been overvalued. If you understand how a company operates and the concept of relative valuations, you can, during a bear market, find […]
For well over 20 years, shareholders of GlaxoSmithKline PLC (GSK) have been on a long journey to nowhere, with the pharmaceutical company lagging well behind its peers. That’s why activist investor Elliott Management has been pushing the company to come up with a plan to correct years of stock price underperformance and operational drift. The […]
Tech stocks have been among the hardest hit in market sell off this year. Roblox (RBLX), the popular video game company, has also seen a sharp decline in its share price as its revenue growth has slowed. However, after its most recent earnings report, the stock price looks like it could be bouncing back. In […]
Wow, what a week! For those whose portfolios are simply filled with long stocks, this has been a disastrous time. But for those who are swimming in cash, this is a great opportunity to make even more money by selling some options to take in the lofty premiums being priced into options due to fear […]
