Stocks Soar Higher with Tail Risk Still Priced In
As stocks continue to go higher we see investors continue to add to their hedges against tail risk. This is a very unusual phenomenon to see. Typically as markets go higher tail risk becomes cheaper. This tells us the market is cautiously bullish as it moves higher. Here are some of the reasons why the…
Inflation Concerns Sends These Commodities Higher
Fascinating internals in the markets leave the overall market essentially unchanged in the last 6 weeks. However, some inflation concerns started to reach into the market today setting off buying in these commodities. If this is the start of a bigger move where can they go from here?
USO Option Activity Indicates a Tide Change for Oil
USO Unusual Option Activity Since last October, the option interest in the oil space has been decidedly bullish and energy ETFs like the United States Oil Fund LP (NYSEARCA: USO) have done well. However, the tide appears to have changed on Monday as put option activity in the fund surged. This places oil in an…
Options 101: Micro E-Mini S&P 500 Futures Options
Last week, TheoTrade co-founder, Don Kaufman, unveiled his Ultima Income Generator class that incorporates micro S&P 500 Index futures options for small accounts. The class generated huge interest from our current members and many people joined the TheoTrade ranks to participate in the two-day discussion of how to sell premium and hedge. One of the…
Are Gold and Silver About to Take Off?
Gold & Silver Unusual Option Activity Report It’s been a tough 2021 for gold and silver hasn’t exactly participated with the broader commodity rally either. Following silver’s one-day Reddit squeeze, it’s failed to generate any bullish follow through. However, as the current rally looks to eclipse the one-year anniversary in March, the market may need…
MO Breaks Out as Option Activity Surges
MO Unusual Option Activity Report At the beginning of 2021, I posted on some unusual option activity in Altria Group Inc (NYSE: MO). The activity was part of a bigger move in tobacco companies since early November. In fact, we’ve had several different tobacco companies on my Top-Down Friday list since that time. While I’ve…
Bearish Wakeup Call for Mortgage REITs Like AGNC?
AGNC Unusual Option Activity Report It’s been remarkable how well corporate bonds and mortgage REITs like AGNC Investment Corp (NASDAQ: AGNC) have held up amidst the route in Treasury bonds. As the 10-year U.S. Treasury yield approaches 1.5%, the perception of risk potential may be finally changing. This change is bearish for riskier assets like…
EXC Option Activity A Good Sign for Utilities
EXC Unusual Option Activity Report If you’ve been watching Treasury bonds lately, it’s been brutal and, as a result, utilities like Exelon Corporation (NASDAQ: EXC) haven’t done well. See, this type of rising interest rate market favors low duration companies. However, as the 10-year U.S. Treasury bond yield approaches 1.5%, it may start to trigger…
Energy Stock Option Activity Explodes on Goldman Forecast
Oil Unusual Option Activity Report In case you were wondering when the oil rally would end, it’s not quite yet. At least that’s what today’s price and option’s activity would seem to indicate. The catalyst appears to be coming from an upgraded oil price forecast from Goldman Sachs based on improved fundamentals. Today’s rally is…
UAL Finding Lift-Off as COVID Outlook Brightens
Have you been waiting for some normality to return? Well, so have companies like United Airlines Holdings Inc (NASDAQ: UAL) and option traders appear to be sharing that optimism. The result was UAL finished trading today nearly 7% higher on the session. The surge came following positive news on the Wall Street Journal (WSJ) showing…