VVIX Point to Calms Seas — And This Play
The VVIX — also known as the VIX of VIX — settled below 100 for the third day in a row on Tuesday, closing at 99.05. This is the first time it has traded sub-100 for more than a day since the pandemic began. What's more, VVIX has fallen off a cliff in […]
Hedging With a Twist: A Creative Collar Strategy
Collaring XLF … You can see on the chart below that XLF has been slowly grinding higher in 2021, kicking off the year by taking out its pre-pandemic peak in the $30 neighborhood. However, the fund took a breather in mid-March, pulling back from record highs above $35 to test support around $33. The ETF’s […]
Crush Financials: Take your Cue from the Curve
Hey There Income Hunters, Have you ever heard the phrase, “Borrow short and lend long?” It’s the winning formula for banks, especially now as the interest rate curve resembles a double black diamond ski slope … Check out the bad boy below. You really have to sharpen your edges to make it down a slope […]
How I Avoid the Pre-Earnings Premium Tax
Hey Traders, You’ll be hearing a lot more about earnings soon, as companies begin to report first-quarter figures and issue forward guidance. While a LOT of option players love to trade into an earnings release, personally, I feel it’s a crapshoot. And crapshoots, as you know, are all about dumb luck. I don’t trade on […]
VIX rides to new lows
Hello Pit Crazies! You may have noticed that my Twitter alter ego, Vol Man, has been joining my posts. How will he help you become a better trader? Every time he appears, you will know that we are at an “inflection point” in volatility — that’s how! It is important to you, because it indicates […]
On the Charts
Hey There Income Hunters, I hope you’re enjoying Easter Weekend! Is it just me, or do things seem a little bit brighter this year as we head into the Best Quarter Ever? Money and vaccines are flowing, and the next several months should be very memorable — in a good way, this […]
This Sector Could Shine in Q2
Hey Traders, The stock market was closed for Good Friday, but hey — MONEY NEVER SLEEPS, so neither do I! This week marked the end of March, and it was a wrap on the first quarter of 2021, too. Unless you’ve been hiding under a rock, you likely know it was generally a strong stretch […]
Markets Hit Home Run on Opening Day
Hey There Income Hunters, I’m a huge Mets fan — and just a huge baseball fan, in general. Opening Day is always one of the most exciting events of the year for me — and it did not disappoint yesterday. Yes, I know, the Mets and Nationals were postponed due to Covid, but I’m just […]
Lessons from the Surprise Media-Stock Meltdown
Hey Traders, Something bonkers just happened in the stock market … again. It wasn’t a “flash crash,” or even another “meme stock” surge … But it took Wall Street by surprise nonetheless. I’m talking about the epic nosedive suffered by media stocks like Discovery Communications (Ticker: DISCA) and ViacomCBS (Ticker: VIAC) late last week. What […]
Not Enough to hold interest rates down
Hey There Income Hunters, Have you ever watched a movie where the bad guy takes a punch and just keeps coming? We’ve got the financial equivalent happening right now … And there’s a market that not even a bullish relative strength index (RSI)/price divergence can save. Not cool, man, that’s one of my favorite analysis […]