Close Intel Short Volatility Trade
On February 7, 2022, we suggested investors sell an iron condor on Intel stock. The iron condor is a favorite structure for investors who want to generate income while risking…
Web Extra:
Federal Reserve Bank Governor Lael Brainerd makes hawkish comments suggesting a reduction in the Fed’s balance sheet could begin as early as next month. This statement prompted a selloff in…
Boeing: (BA)
Investors have many questions on their minds these days: Top of that mind is, "Will Boring ever reach its past days of glory?" We think the answer is yes, but…
CBOE: What’s the Trade?
The investment environment is undergoing changes that are not readily apparent to the investment community, both institutional and retail. While reading about inflation and hyperinflation in 3rd world countries is…
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…