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Here Come Earnings
It's hard to deny sentiment is building for a strong earnings season. Depending on who you ask, profits are projected to rise more than 20 percent. While the estimates vary, direction is positive because all the research shows consensus figures climbing in recent...
Retail & Railroads: Options Recap
Here's a breakdown of some big options spreads from Tuesday. Both reflected continued optimism about the economy. First, a put ratio spread in the SPDR S&P Retail ETF (XRT): A block of 50,000 27-July 48 puts was bought for $0.36. Some 100,000 27-July 47 puts were...
Are Stocks Headed for a Breakout?
We've written a lot about the S&P 500 holding a bullish trend line. Now another potentially key level could be at play for the index. A resistance level around 2800 has been in play since mid-March as equities rebounded from their violent swoon in February. Now...
Headlines Keep Pressuring Oil Higher
News events keep pushing oil higher. Last month, Iranian sanctions were the story. Now traders are focusing on a disruption in Norway as oil workers go on strike. Libyan supplies are also being kept off the market as civil war halves the country's crude production....
So Much for a Trade War Killing Stocks
The economy is strong, earnings are near and a trade war might be priced in. That kept stocks rising last week. The S&P 500 climbed 1.5 percent in the holiday-abbreviated week between June 29 and July 4. More than four-fifths of of the companies in the benchmark...
Goldilocks Silences Jerome Powell
Fairy tales keep coming true in the U.S. economy. Most people know the classic story of Goldilocks describing the porridge of the Three Bears: Not too hot, not too cold, but just right. Most people probably also know how it gets applied to finance: Inflation's not too...
Traders Doubt Safety of Classic Safe Haven: Options Recap
So much for utilities being a safe haven. The SPDR Utility Fund (XLU) has risen about 6 percent in the last month, making it the top-performing major sector. But yesterday, traders braced for a potential selloff: A block of 75,000 September 50 puts in XLU was bought...
China Trade War Sends Chip Giant on Wild Ride
One of TradeStation's most actively traded stocks is finding itself at the middle of a trade war. Micron Technology (MU) was the second-busiest symbol among our clients in May and June as management raised guidance. This month, President's Trump's trade war with China...
Basics of Hedging, Part 2: Covered Calls
Most investors know that volatility can inflict pain on even the best holdings. So today we're continuing a series of posts on using options to hedge. Last time we considered buying puts for protection. Today we'll look at selling covered calls for protection. Owning...
Here Come Earnings
It's hard to deny sentiment is building for a strong earnings season. Depending on who you ask, profits are projected to rise more than 20 percent. While the estimates vary, direction is positive because all the research shows consensus figures climbing in recent...
Retail & Railroads: Options Recap
Here's a breakdown of some big options spreads from Tuesday. Both reflected continued optimism about the economy. First, a put ratio spread in the SPDR S&P Retail ETF (XRT): A block of 50,000 27-July 48 puts was bought for $0.36. Some 100,000 27-July 47 puts were...
Are Stocks Headed for a Breakout?
We've written a lot about the S&P 500 holding a bullish trend line. Now another potentially key level could be at play for the index. A resistance level around 2800 has been in play since mid-March as equities rebounded from their violent swoon in February. Now...
Headlines Keep Pressuring Oil Higher
News events keep pushing oil higher. Last month, Iranian sanctions were the story. Now traders are focusing on a disruption in Norway as oil workers go on strike. Libyan supplies are also being kept off the market as civil war halves the country's crude production....
So Much for a Trade War Killing Stocks
The economy is strong, earnings are near and a trade war might be priced in. That kept stocks rising last week. The S&P 500 climbed 1.5 percent in the holiday-abbreviated week between June 29 and July 4. More than four-fifths of of the companies in the benchmark...
Goldilocks Silences Jerome Powell
Fairy tales keep coming true in the U.S. economy. Most people know the classic story of Goldilocks describing the porridge of the Three Bears: Not too hot, not too cold, but just right. Most people probably also know how it gets applied to finance: Inflation's not too...
Traders Doubt Safety of Classic Safe Haven: Options Recap
So much for utilities being a safe haven. The SPDR Utility Fund (XLU) has risen about 6 percent in the last month, making it the top-performing major sector. But yesterday, traders braced for a potential selloff: A block of 75,000 September 50 puts in XLU was bought...
China Trade War Sends Chip Giant on Wild Ride
One of TradeStation's most actively traded stocks is finding itself at the middle of a trade war. Micron Technology (MU) was the second-busiest symbol among our clients in May and June as management raised guidance. This month, President's Trump's trade war with China...
Basics of Hedging, Part 2: Covered Calls
Most investors know that volatility can inflict pain on even the best holdings. So today we're continuing a series of posts on using options to hedge. Last time we considered buying puts for protection. Today we'll look at selling covered calls for protection. Owning...