Wednesday, December 11, 2019
Recently, there was some significant unusual options activity in United States Steel (X). A flood caused US Steel to shut down one of its steel mills and the stock dropped 6% on the news. This is the sort of situation that typically makes for a good shorter-term options trade. A steel mill closing should cause […]
It’s been three months since I took a break to deal with some cancer issues. As I began to catch up, it was Déjà vu…. Déjà vu… “The strange feeling that in some way you have already experienced the present situation.” Like “Ground Hog Day”, I’ve experienced the same warnings for the last decade. John […]
So the Federal Reserve cut interest rates. This was their third rate cut in the last three months. The new target range for overnight interest rates is 1.5 to 1.75%. That’s below the rate of inflation. There are three things you should do right now. #1. Don’t panic. #2. Seriously, don’t panic. #3. Make sure […]
Last week, House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Trump. According to The New York Times, the inquiry will look at “charging him with betraying his oath of office and the nation’s security by seeking to enlist a foreign power to tarnish a rival for his own political gain.” I won’t discuss […]
I have to admit something to you—I love Tesla (TSLA). I think it’s an amazing car company. I’m a big believer in the product, and I realize that Tesla is radically upending the global auto industry. Not only that, but Tesla is changing the world energy market. I think the company will grow and grow. […]
A large trader made a moderately bullish, medium-term trade on Ford (F) this past week. The trader bought 1.6 million shares of Ford while selling 16,000 January 10 calls at the same time. This is a covered call trade which can make money up to $10 a share in Ford, while earning an additional yield […]
Imagine there’s a stock that’s up nearly 30-fold since 2000 and not a single Wall Street investment analyst follows it. This investment has crushed just about every hedge fund out there, yet Wall Street is entirely unaware of it. Worst of all, it’s stock in a company that’s known by many. It’s a favorite of […]
I wrote this article, and it was published two weeks ago. Little did I expect the attack on the Saudi oil infrastructure and the effect on oil prices. Here it is again with additional comments. For the last three months, crude oil has been stuck in a $50 to $60 per barrel trading range. The […]
Coffee is one of those consumable goods that you simply don’t want to mess with. The country may fall into a deep recession. The ocean may rise to levels that engulf the coastlines. A meteor at this moment may be hurtling towards Earth. And yet, it won’t stop coffee drinkers from going to buy their […]
July is traditionally a very slow month for the financial markets. Not only is it the prime vacation month for families (most kids go back to school in August), but there’s also the July 4th holiday week. Generally speaking, investors and traders are often far away from the markets at this time of year. Even […]
