Lighting up Cannabis Futures

Bullish or bearish, most traders have an opinion on pot stocks, and those opinions have manifested themselves in the volatility of the prices. Tilray Inc. (TLRY), for example, has seen prices as low as $2.50 and as high as $215 in its short three-year lifetime on public markets. It’s currently trading for roughly $15. While … Continued

Betting on the Fed

Incorporating spread trades into a portfolio can open a whole world of opportunity   The once-sleepy interest rate environment is starting to awaken after a recent Federal Open Market Committee meeting. Following the Fed’s announcement at that gathering,  U.S. 2-Year Treasury Yields jumped from 0.15% to 0.25% in a matter of days and then remained  … Continued

The Futures of Technology

A new futures product helps investors balance exposure to tech stocks The line between retailing and technology has blurred. Who can decide whether to call Amazon a retailer or a tech company? What about Target? In certain cities, Amazon offers in-person shopping while e-commerce represents almost a fifth of Target’s revenue. But classifications aside, the … Continued

YOLO Fever

Buy stock in multiple companies to increase the chance of picking a winner and lessen the pain of choosing a loser

Short Side of the Moon

Feeling bearish? Options and futures can beat short-selling. Here’s how. There’s something suave about shorting the market, whether it’s fading an earnings pop, selling a pandemic rally or jumping into a long squeeze. It’s risky, contrarian and sometimes highly profitable. As the adage goes, markets take the stairs up and the elevator down. While short-selling … Continued

Tips for Trading Microchips

Semiconductor stocks offer high volatility and extraordinary liquidity Tech stocks were the market to buy in 2020. While Covid-19 crippled many sectors, technology stocks bloomed with a 40% rally from the start of 2020 to the beginning of this year. (See Active market, big potential, below). But “technology” has become a catch-all term, so let’s … Continued

Delta Values

Traders can take advantage of the key to estimating that an option will expire in-the-money New traders often think they’re drowning in information when they open their first options chain. Dealing with puts and calls, dozens of strike prices and numerous expiration dates can feel like shopping for a jar of spaghetti sauce in a … Continued

Exploiting Election Week Volatility

Stock options can triple in volatility as election day approaches, creating opportunities for traders to sell when prices skyrocket Expectation of movement in the markets helps determine the price of the options that traders rely on for “insurance.” The greater the risk of loss, the greater the cost of the insurance.  Expectations are measured with … Continued

Start Here: Calculating Volatility

With some (relatively) simple math, traders can track price moves in stocks and indexes When a stock or index is down on the day, financial media and self-proclaimed market gurus describe it as “volatile,” even though that down move just brought the stock back to where it started before it rose. “Experts” improperly use the … Continued

ETF Interest Rate Strategies

Exchange-traded funds provide a good way of trading economically sensitive interest rates Few products are as costly and complex as interest rate futures. For retail traders looking for interest rate exposure, Treasury ETFs are a much better place to start. But before buying a bond ETF, take the time to understand a few basics about … Continued