The Week Ahead | 04/04/2022
Investors will look at the Federal Open Market Committee (FOMC) minutes to see the likelihood of a steeper increase in short term interest rates. With the Yield Curve already inverted,…
Will Tech get Rekt?” (QQQ)
Carter Braxton Worth took a swing at Tech Stocks on Friday's episode of Options Action. We are sympathetic with Carters' view and strongly recommend that investors reduce long exposure directly…
Close Vale Trade: (VALE) & More Market Update
Yesterday, we suggested that investors close the short-put spread trade on BHP as virtually all the money that one could make on that trade was captured by those who participated.…
Close the BHP Trade
Sometimes a trade works faster than one anticipates. This occurrence is a pleasant surprise, but we should remind ourselves that we might buy the bottom and sell the top a…
Chewy, Inc.: Earnings Call
Chewy (CHWY) is set to announce earnings after the close on Friday. Monday's price action suggests a frontrunner knows or is hoping for an earnings beat and positive guidance. This…
The Week Ahead | 03/28/2022
Fed Chair Powell repeated that “if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a…
Micron Technologies: MU
The past few months have not been so kind to the semiconductor stocks. SMH, the ETF that tracks semiconductor stocks, peaked a $320 in early Feb 2020 and then fell…
Biogen: BIIB
In bear markets, most stock prices fall because valuation and risk premiums are correlated to economic activity and interest rates. As a result, we have been focusing on overpriced stocks…
Royal Caribbean Cruises Ltd. (RCL)
If the government decimated one industry with its mandated lockdown, it was the cruise industry. These companies had to shut down entirely and were out of commission for several years.…
Close the Trade in Deere: DE
When trading options, the holy grail is buying a put or call and then seeing the stock collapse or rip, turning a small investment into a huge gain. But anyone…
The Week Ahead | 03/21/2022
The conflict in Ukraine remains at the forefront for investors. The Federal Open Market Committee (FOMC) raised rates, but the outlook for further rate hikes is more aggressive. The Russian…
