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 […]
The great wealth transfer is underway. Here’s how to prepare
Andreswd | E+ | Getty Images The great wealth transfer is underway and families need to prepare, according to certified financial planner Stacy Francis, president and CEO of Francis Financial in New York City. An estimated $84 trillion of wealth will change hands by 2045, with the majority going to Gen X and millennial heirs, […]
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 […]
Here’s how to know if active ETFs are right for your portfolio
Izusek | E+ | Getty Images Exchange-traded funds are generally known for passive strategies. But there has been a surge in actively managed ETFs as investors seek lower costs and more precision, experts say. Active ETFs represented just more than 2% of the U.S. ETF market at the beginning of 2019. But these funds have […]
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 incentivize your kid to start investing for retirement
Momo Productions | Stone | Getty Images Once you’ve decided that opening a Roth individual retirement account for your child is a great idea, now comes the hard part: convincing the child to save for a far-off retirement instead of spending that hard-earned money. I have some ideas for making the case to your child. […]
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 […]
How to invest in bonds amid falling interest rates
Lucy Lambriex | Stone | Getty Images As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. The central bank in September kicked off its first easing campaign in four years with a 50 basis point rate cut, which brought its benchmark rate […]
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 […]