Options

This Could Be the Best Fed Rate Hike Trade in 28 Years

This Could Be the Best Fed Rate Hike Trade in 28 Years

As expected, the Federal Reserve (Fed) raised rates in it June 15th meeting. Until then, the assumption was that the Fed would incrementally increase rates by 50 basis points (bps) at the next handful of meetings. However, after the hot consumer price index (CPI) number the week prior, the Fed was pushed into a more […]

headquarter of the Federal Reserve in Washington, DC, USA, FED

Volatility Is High Again, Take Advantage of It

The hot consumer price index (CPI) number last Friday has caused major damage to the equity markets. Volatility has remained elevated. There seems to be no relief in sight regarding the inflation numbers that we are seeing across industries—and, most importantly, in our daily expenses. The Federal Reserve will do what it can to increase […]

3 Funds for Your Money During the Market Crash

3 Funds for Your Money During the Market Crash

The markets are ugly. This market crash is ugly. Volatility, as measured by the Cboe Volatility Index (VIX) just spiked to 32.76. Traders are running scared. Stocks are plunging. Inflation is out of control. Central banks are racing to cool inflation. The Dow fell from its April 2022 high of about 35,500 to 30,663. There […]

Rising food cost and grocery prices surging costs of supermarket groceries as an inflation financial crisis concept coming out of a paper bag shaped hit by a a finance graph arrow with 3D render elements.

Options to Hedge Your Rising Expenses from Inflation

Inflation is hitting all of us pretty hard. The cost of living is rapidly increasing—most notably, we have seen gas prices increase substantially over the last year. While gas prices are the headline, consumers are being hit with rising costs everywhere. Food, rents, housing prices, gas prices, heating oil. It’s everywhere. That list doesn’t even […]

Sell Calls on Your Portfolio, Not Your Individual Names

Sell Calls on Your Portfolio, Not Your Individual Names

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 […]

OXFORD, UK - DECEMBER 5th 2016: Snapchat logos printed onto paper. Snapchat is a popular social media application for sharing messages, images and videos

Trade of the Week: SNAP

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 […]

Time to Buy Some “Food Insurance”

Time to Buy Some “Food Insurance”

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 […]

NEW YORK CITY, USA - MARCH 15, 2020: Apple store logo at Apple Fifth Avenue in New York City, NY, USA

High Volatility Can Lead to Higher Returns

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 […]

Trade of the Week: ARKK

Trade of the Week: ARKK

The market has been in a significant downtrend this year, but the ARK Innovation ETF (ARKK) has been hit even harder.  ARKK is down 60% year-to-date as it holds some of the most speculative stocks from the past several years.  However, several options trades last week appear to be from traders opening up bullish positions […]