Wednesday, April 1, 2020
One of the secondary reasons for the market crash (after COVID-19) has been the extreme selloff in the price of oil. Crude oil has dropped to around $20 a barrel for the first time since 2002 due to a price war between Russia and Saudi Arabia. One popular method for trading crude oil is United […]
With most asset classes getting pummeled this past week, investors are seeking the relative safety of the US dollar. One method to get bullish exposure to the dollar is through Invesco DB US Dollar Index Bullish ETF (UUP). UUP is a fund that is long the dollar versus a basket of other major currencies. Typically, […]
With stocks in a bear market and potentially more selling ahead, the Fed has cut interest rates to 0% and started a new $700 billion quantitative easing program. This could cause a substantial amount of volatility in the market, but especially in rate sensitive sectors like financials. In fact, a trader just bought a large […]
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 […]
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 […]
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 […]
There was a very large options trade recently in Bloom Energy (BE) which stood out for a stock that doesn’t generally trade that many options. BE is a green energy company that had been enjoying a nice run higher in the stock price in recent months. However, the company just announced it has to restate […]
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 […]
Despite the market selling off, there was an unusual amount of options activity in Amazon (AMZN). The online retail giant crushed earnings and the stock was actually up over 7% on a day when most major stock indices were down 2%. The selloff was due to fear over the coronavirus and what impact it may […]
Recently, there was a large amount of block trade activity in PowerShares QQQ Trust (QQQ). QQQ is one of the most popular and liquid ETFs in the world which tracks the Nasdaq 100. It has become an extremely important index because it tracks most of the largest stocks in the world. With fears of the […]
