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Trade of the Week: High Yield Bonds

Trade of the Week: High Yield Bonds

The market continues to be ultra-volatile due to serious concerns over the global economy in the wake of the coronavirus. High yield bonds (aka junk bonds) tend to sell off during times of high stress as investors move to the safety of government bonds instead. This past week, someone bought a one-week put spread in […]

Trade of the Week: Volatility

Trade of the Week: Volatility

The market sold off sharply this week into correction territory on fears of the global impact of COVID-19. Options volumes were through the roof as expected as traders and investors rushed to get in and out of positions, including hedges. Volatility soared, with the VIX (S&P 500 volatility index) trading at 2-year highs. A popular […]