Friday, May 3, 2024
Dear Investor, While the broad stock market indices remain at near-record levels, there are sectors of the market that have dropped into correction or even bear market territory over recent months. So while income-focused investors, such as my subscribers, continue to generate high-yield income, investors focused on more aggressive stock trading are feeling the pain. […]
Covered calls can be an excellent way to improve returns while holding ETFs or other index products. For instance, a trader recently place a large covered call trade in the iShares Russell 2000 ETF (IWM). The trader purchased one million shares of IWM while simultaneously selling 10,000 calls that expire in two weeks. This strategy […]
The popular Cathie Wood ETF, ARK Innovation ETF (ARKK), continued its run in unusual options trading territory last week. ARKK is a popular speculative stock ETF that holds a lot of the buzzworthy names in the tech world such as TSLA, ZM, and COIN. One interesting trade from the week was a very large call […]
Last week, a highly unusual amount of options action occurred in iShares TIPS Bond ETF (TIP). TIP is a popular ETF for investing in TIPS bonds, which are treasury bonds that are indexed to inflation. In other words, as inflation goes up, these bonds go up. While the ETF has $38 billion in assets, it […]
Chip shortages could last well into 2023, at least according to Intel CEO Pat Gelsinger. In an October interview with CNBC, Gelsinger said: “We’re in the worst of it now, every quarter, next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023.” While the shortage continues to be bad […]
Precious metals have been active in recent weeks with inflation and interest rates frequently making headlines. A popular method for trading silver is through iShares Silver Trust (SLV), an ETF which tracks physical silver. One strategist feels that SLV will remain in the low $20 level through April of next year. In order to create […]
Dear Reader, Last week, the CPI inflation was released, showing the highest year-over-year inflation in 30 years. After living and investing in a low-inflation economy for a couple of decades, investors now need to pick some inflation-fighting stocks and funds. In the 1980s, the Federal Reserve killed inflation by quickly and massively increasing interest rates. […]
They say you can’t have it all, and that there’s no free lunch in investing. All true. But that doesn’t mean you can’t have both high monthly yields and be safe. Look, I spend as much of my time as possible on the road… Driving from camping site to camping site, seeing as much of […]
One of the more intriguing aspects of 2021 has been the relatively high levels of expected volatility in the equities markets. The VIX, a widely-used barometer of broad market volatility, has been consistently higher throughout the year compared to its long-term median. Despite the high levels of anticipated volatility, the market hasn’t yet seen that […]
It’s never a bad idea to know how to minimize your equity exposure, especially right now, as the market is showing some cracks in its armor lately. The S&P 500 was down roughly 5% in September, the first down month in 2021 since January, and the largest since the pandemic hit in March 2020. Granted, […]
