Option Bulls Eye Energy Sector as Sell-off Slows
The past week should be a wake-up call for many investors that have relied on the rising tide to lift their ships. What happens when the tide is moving out? That’s what we’re about to experience as the Federal Reserve is expected to begin tightening monetary policy and will provide their statement tomorrow. Rather than…
From Skid to Bid as FOMC Meeting Looms
The market felt the pressure today as the odds of a Fed rate hike have been moving higher in recent weeks and are set to announce on Wednesday. The initial weakness turned to strength today as ARKK began to turn the corner during the day. Is this the bottom? The early UOA pointed to bullish…
Inflation Sensitivity: How Do Your Stocks Stack Up?
What are the current inflation risks to the market? I guess it depends on who you ask. More importantly, what is the market saying about inflation and is your portfolio positioned to outperform based on that direction? Let’s talk about some of the data on inflation, how the market’s posturing and the sensitivity of certain…
Traders Guide to Analyzing Short Interest
If you’re following the market at all, you’ve likely heard the term “short.” The word short is used for selling shares you don’t own or even an selling an option or futures contract. Typical short sellers of stock are hedge funds or more sophisticated traders. However, what does that mean for the average trader? How…
Bond Yield Lift-Off should be a Warning for Stock Investors but Bullish for Gold
The recent selling in Treasury bonds should be a warning sign for stock investors. Not only is the sell-off a response to Fed policy, but it also accompanies sluggish returns historically. On a positive note, as yields stall, this is precisely the point where gold should outperform...
Fundamentals 101: Return on Equity
How do you evaluate the effectiveness of a company's management? One measure that can be used on a wide variety of stocks is Return on Equity. That means that if you're looking for a growth, value or income stock you can apply this measure. That's due, in part, to the fact you're considering the return…
The Ultima Income Generator Guide to Selling Options Part 6
This is the sixth and final installment to the Ultima Income Generator. While this doesn't represent a complete description of all of the elements to the strategy and hedges, our members have access to a 5-hour class with slides, and multiple 3-hour classes on hedges. Since we have progressed through the back-drop of strike and…
Find Your Valuation Edge with the PEG Ratio
I know, you're probably laughing at the prospect that a fundamentals measure like PEG provides an edge. You may think that we're beyond looking at fundamentals in the current market. You may be thinking that growth perennially outperforms value. The reality is that fundamentals and valuation always matter. It's just a matter of which fundamentals…
The Ultima Income Generator Guide to Selling Options Part 5
Now that you have the rules for selling calls and puts, let's talk more about the advantage that you gain from the strike/expiration selection. As a premium seller, you make your money through time decay, measured by the option Greek "Theta." The rules outlined in Ultima are specifically designed to balance the reward and risks…
NASDAQ Engineers a Bullish Stick Save
The NASDAQ was looking to breakout of its multi-month range today on the opening gap and sell-off. However, the breakaway gap was averted as it rallied late. JPMorgan's Jamie Dimon shares outlook of 4 rate increases this year by the Fed and discussed whether they can 'engineer' a soft landing for the economy. (BMY, NVDA,…