Understanding options ‘skew’ and how to use it to your advantage trading stocks or bitcoin
Options skew refers to the difference in implied volatility (IV) across various strike prices or expiration dates for options on the same underlying asset. It reflects the market’s perception of risk and the demand for specific options, often indicating how traders anticipate potential price movements. Typically, skew arises because out-of-the-money (OTM) options — puts or […]
Tariff uncertainty has created a buying opportunity. How to use options to capitalize
Investor sentiment has drastically changed in recent weeks as tariffs — or the threat of tariffs — have been introduced to the markets. Last month’s discussion of awakening animal spirits and multiple analysts racing to readjust their 2025 S & P 500 targets served as a warning, as the Cboe Volatility Index (VIX) crashed under […]
How to invest $50,000 in 2025 for biggest returns with some risk
Investors looking to get the biggest returns without taking outsized risks have a few options for next year, according to pros on Wall Street. Market strategists expect stocks to move higher in 2025, but anticipate a turbulent year, according to the CNBC Market Strategist Survey released Dec. 13. The S & P 500 is projected […]
How to buy a little insurance if the 2024 market boom loses some steam into year-end
Record-breaking annual equity inflows of $448 billion, according to Bank of America, continue to push the major indices higher. The S & P 500 has now seen seven consecutive weeks of inflows, keeping the post-election momentum intact. I want to use the S & P 500 SPDR Trust ETF (SPY) to hedge these gains and […]
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 […]
Small caps are outperforming large caps. How to use charts to find buy candidates in the group
There has been a lot of discussion about the recent outperformance of the Russell 2000 Index , the small-cap benchmark, to the broader market Let’s take a look back at what the Russell 2000 has actually done and what specific areas of the index to look for opportunities. The outperformance of the iShares Russell 2000 […]