The inherent danger of parabolic stock moves and how to handle
People always ask me why I dislike parabolic moves. The answer is simple: When a stock rises significantly in a short period — resulting in a price chart that resembles the curve of a parabola — it goes down far faster than it can creep up, for whatever reason. Consider a parabolic move from a […]
The bullish Meta trade is paying off. How to keep exposure while limiting risk with options
As we approach the expiration of our Meta Platforms (META) trade from early October we have successfully captured 78% of the total maximum gain. Given the approaching expiration and the trade’s profitability, it’s time to roll the position. The goal is to maintain bullish exposure as we continue to see a positive outlook that continues […]
How to profit if rates keep rising, going against the Fed and stock investors
U.S. stocks soared to record highs after Donald Trump’s election win and a quarter-point rate cut from the Federal Reserve. U.S. government bond yields have surged too, puzzling many market participants. I am going to stick with the contrarian view and bet on rates continuing to move higher. I’ll express that through a bearish bet […]
How global markets are reacting to the U.S. presidential election
ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Tim Seymour, Seymour Asset Management chief investment officer, and Gunjan Banerjee, Wall Street Journal lead writer, discuss how the markets are reacting to the U.S. presidential election. Source link
This bank stock is losing momentum. How to profit from a pullback using options.
The financial sector broke out of its trading range recently and has been soaring after a stellar round of earnings reports from major financial institutions like JPMorgan Chase, Wells Fargo, BlackRock and Morgan Stanley. However, markets don’t usually move in a straight line. A recent mean reversion trade I shared on Alibaba demonstrated this well […]
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 […]