Leverage: It’s Why Portfolios Blow Up

Leverage: It’s Why Portfolios Blow Up

Last week, the forced unwinding of the Archegos Capital Management hedge fund put fears of a market collapse into investors’ minds. While it appears to have been an isolated case, the fund’s collapse vividly points out the dangers of using leverage to boost investment returns. Let’s discuss how excess leverage can turn declines in security […]

A lot of cash US dollars.

When Did Covered Calls Become Underrated?

Covered calls are one of the most popular investment strategies used by both retail and institutional traders. For retail traders, covered calls are easily accessible and don’t require a substantial amount of maintenance. For institutions, covered calls are beneficial both because they can scale into the billions of dollars and because they have long-term portfolio […]

Electric white modern car near Electric car charging station. power supply plugged into an electric vehicle. 3d rendering.

LAC Stock Price Fuel by Booming Demand for Electric Vehicles

“The supply-and-demand balance for lithium fell into deficit in 2020 for the first time in years, according to commodity analysts at CRU. For 2021, the firm is forecasting lithium demand of about 450,000 metric tons, exceeding supply by roughly 10,000 metric tons,” as noted by The Wall Street Journal. That’s all great news for lithium […]

Trade of the Week: MU

Trade of the Week: MU

Significant options volume showed up on earnings day last week for Micron (MU). The computer memory chip producer was up nearly 5% on better than expected earnings. That’s likely why 75% of the 335,000 options that traded that day were calls. Call activity tends to correlate with bullish activity in the stock. Several of the […]