Options

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 […]

Stocks Are Plunging – Is Gold The Right Hedge?

Stocks Are Plunging – Is Gold The Right Hedge?

When the stock market does its best impression of a swan dive, it tends to come from an unexpected catalyst. It’s generally not something about interest rates or corporate earnings or jobless numbers. Those factors matter over time, but they don’t usually cause sudden, severe moves in the market. No, very large selloffs often come […]

Trade of the Week: E-Trade Financial

Trade of the Week: E-Trade Financial

The share price of E-Trade Financial (ETFC) soared last week on news of a Morgan Stanley (MS) buyout offer. MS is expected to acquire ETFC for $13 billion. The news sent the stock from $45 to as high as $57 on the open the day the acquisition was announced. ETFC became a buyout target once […]

Is Apple Going To Lead the Market Lower?

Is Apple Going To Lead the Market Lower?

Can you name the biggest stocks in the U.S. markets? It probably won’t take you long to pick out the highest market cap companies, with well-known names like Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). What’s interesting is that the five largest U.S. companies, and several others near the top, are all primarily tech companies. […]

Trade of the Week: Unusual Options Activity in Uber

Trade of the Week: Unusual Options Activity in Uber

The market may be focused on the coronavirus, but that didn’t stop an usual amount of trade activity from occurring in Uber (UBER) options. The ride share company is known for losing lots of money, but the most recent earnings were quite optimistic. The CEO expects the company to turn a profit by the end […]

Will Stocks Continue To Rally Despite The Coronavirus Scare?

Will Stocks Continue To Rally Despite The Coronavirus Scare?

The stock market can be a crazy place. The unpredictability of the financial markets is what makes them so exciting and challenging for traders (and investors). While the long-term direction of stocks has always been up, there are definitely significant periods of volatility over shorter time frames. For instance, this year we’ve already had a […]