Banking Industry

The Fed Always Runs To Save Wall Street

The Fed Always Runs To Save Wall Street

Chuck Butler recently discussed the probability of default of $300 trillion in global debt. Chuck added, “The Fed always runs to save Wall Street.” Why is that? Why not Main Street? The Federal Reserve website outlines their mission: “The objectives as mandated by the Congress in the Federal Reserve Act are promoting (1) maximum employment, which means all Americans […]

Trade of the Week: Bank Of America

Trade of the Week: Bank Of America

Looking at options block trades can be a useful way to see what big investors and funds are doing in the options market. Recently, a large trader bought 2 million shares of Bank of America (BAC) while selling 20,000 January calls at the same time. This is likely a covered call trade and suggests that […]

Will The Next Bank Bailout Bankrupt America?

Will The Next Bank Bailout Bankrupt America?

Can bank bailouts bankrupt America? Why would congress let it happen? In a recent Daily Pfennig, friend Chuck Butler tells about educating his grandsons about the worst president there has ever been: “…. I couldn’t let that one slip … I explained to them that Woodrow Wilson was the all-time worst president, … culminating with, he ushered […]

Is The Brexit Mess Going To Tank The UK Markets?

Is The Brexit Mess Going To Tank The UK Markets?

Amidst the government shutdown in the US and the destabilizing trade war with China, it’s easy to forget that the situation in the UK is not any more stable than it is here. The UK Parliament just voted down the current Brexit deal in a massive defeat for the government. In fact, it’s the biggest […]

How To Bet Big On Banking With Options

How To Bet Big On Banking With Options

I often make the argument that trading options is superior to trading stocks. Now, I’m not talking about investing in stocks… if your goal is to collect dividends, you obviously need to buy stocks. But when it comes to trading (short to medium-term holding periods) options are almost always the better choice. Generally, options traders […]