How to hedge some big tech gains going into the market uncertainty next week
Given the uncertainty surrounding the election next week and some mixed mega-cap technology earnings this week, I want to book some 2024 chip stock profits. I want to hedge my exposure by owning put options in the high-flying VanEck Semiconductor ETF (SMH) . SMH YTD mountain VanEck Semiconductor ETF, YTD Risk can happen fast. The […]
How to keep your portfolio steady in volatile times as the election approaches
The election is just a week away – and markets may be about to enter a rocky period – but investors can take a few steps to ensure their portfolios are ready to handle potential shocks. The S & P 500 is toting a 1.3% gain in October, but it’s up more than 22% in […]
How to play the market for small nuclear reactors that tech is creating
The next generation of nuclear technology could be moving closer to becoming a reality, driven by the tech sector’s growing demand for electricity to power artificial intelligence. Small modular reactors , or SMRs, promise to reduce capital costs and accelerate construction timelines that typically plague nuclear plants, but the technology has struggled to reach the […]
How to capitalize on the Tesla volatility by creating a ‘synthetic dividend’
Tesla (TSLA) surged more than 20% post earnings as CEO Elon Musk delivered an encouraging forecast and revealed surging sales in his electric vehicle company. Shareholders enjoyed the biggest single-day pop in TSLA in over a decade, rising to a session high of $262.12. Massive volume of over 200 million shares ( three times average […]
Pairs trading explained and how to execute one with options
Pairs trading is a market-neutral trading strategy that involves simultaneously buying one asset, such as a stock, and selling another related asset. The idea is to take advantage of the relative price movements between two highly correlated assets, typically within the same sector or industry. These might be stocks, commodities, or even currencies. We will […]
How to bet against real estate using options as higher rates pressure housing market
The 10-year Treasury yield has been on an upward trend since September, now reaching its highest level since late July. As a key benchmark for long-term interest rates, including 30-year fixed mortgage rates, this rise in yields is exerting negative pressure on the real estate sector. With this in mind, I’m looking to capitalize on […]
Rally in Chinese stocks is showing some exhaustion. How to trade it from here with options
China’s stimulus package and easing monetary policy have added trillions in market value to stocks like PDD Holdings, Baidu, Futu Holdings, and Alibaba. However, stocks don’t usually climb in a straight line, and many of these names are showing signs of exhaustion after a significant rally. Alibaba (BABA) , for example, has surged 40% in […]
How to trade falling Tesla shares from here with lower risk using options
Tesla’s robotaxi event is now in the rearview mirror and investors seemingly wanted more. The movement in the patience-to-impatience investor pendulum for Elon Musk (and Tesla) has fully swung to impatience. I believe this initial negative reaction (down nearly 10%) is presenting a discount in Tesla (TSLA) shares and I want to use options to […]
This restaurant stock could be in for more tough times. How to trade it
I am going to explore an interesting trade set-up using three exponential moving averages to identify a restaurant stock that will continue to trend downward. I’ll review how I plan to capitalize on that move using options. Looking at the one-year daily chart of Olive Garden-parent Darden Restaurants (DRI) , you’ll notice the stock has […]
How to hedge the overall market with several critical events just around the corner
The upcoming month is a crucial time for the stock market, with a series of events that will make an impact. They come at a time when valuations are rich for equities. I’ll discuss a market hedge if things don’t work out perfectly for the bulls. Equity market valuation metrics are financial ratios and indicators […]