No Crypto? Consider These Proxies

Cryptos have a weak relationship with the major equity indexes. Anything between -0.15 and 0.15 is considered to have no relationship. Digital currency’s correlation with the S&P 500 is 0.13, and its correlation with the Russell 2000 is 0.05. The Nasdaq 100 is slightly more correlated but still very low at 0.28. This lack of … Continued

Lookback: Introducing Options Backtesting by tastytrade

Lookback is now live and open to everyone—you just need a tastytrade account. Perform Option Analysis, Backtest using historical data, expected trade simulation and projection using the Black-Scholes algo, plus advanced greeks and risk analysis. Go to https://lookback.tastytrade.com/ to signup. Watch tutorial videos here.   Forecasted profit/loss graphic Unique to lookback, we include a historical … Continued

Two-Thirds In

The S&P 500 rallied over 20% for the first 8 months of the year, the largest such rally for the first two thirds of the year since 1997. The historical median return for the S&P 500 from September to Year End is +5.2% … time will tell if the S&P continues on this year’s upward … Continued

Stocks and ETFs to Trade Gold and Energy

Gold Bug? Gold is down 8% over the past year; many gold stocks are down even more. For the Gold Miner ETFs, take a look at GDX and GDXJ. For the actual commodity, look at Silver (SLV) and Gold (GLD). Can Energy Catch Up? The energy sector (XLE) is in negative territory over the last … Continued

Recent Futures Ranges & Trade Ideas in Chinese Stocks

Popular Futures Contracts: Intra-day, Median High-to-Low Ranges Per Month Check out Oil— huge moves in the month of August (see the Small Exchange’s /SMO contract for a 100 barrel alternative). Equities are relatively quiet in the summer months. Chinese Stocks and ETFs New Chinese regulations recently sent Chinese equities plummeting. Check out the following Chinese … Continued

Earnings Impact and a Look at Defense Stocks

Home Depot (HD) and Walmart (WMT) earnings were this morning. Lowe’s (LOW) and Target (TGT) is tomorrow. Download the full list here. Defense Stocks Three companies that are often synonymous with the U.S. military and military spending—Lockheed Martin (LMT), Raytheon Technologies (RTX) and Northrop Grumman (NOC). While U.S. stocks are making all time highs, these … Continued

Futures-to-ETF Cheat Sheet

Here’s a handy guide to convert your favorite futures to ETFs! The free weekly Cherry Picks newsletter from tastytrade is stuffed with market research studies, data-driven trade ideas, and unique insights from the geekiest of geeks. Conquer the market with confidence … get Cherry Picks today! Cherry Picks is written in collaboration with Michael Rechenthin, … Continued

Volatility is Waning, Again

The data below reflects Aug. 3 prices.  Check out the VIX prices per month. At the bottom, we show the 5-, 10- and 30-year VIX averages. We are including this to provide you with some context. Historically, what we are seeing is pretty common—this is a slower time for both government and business with many … Continued

Three Ways to Play Long Odds

Options enable active investors to quantify and manage risk. But sometimes they may wantto try for a big score with low-probability, high-return strategies. Investors want to see their portfolios grow in value—it’s why they generally steer a course toward higher-probability trading strategies. But they would do well to think in terms of repeatable “investable strategies” … Continued

Naked Puts for the Risk Averse

In the Tactics section of this issue, an article entitled Three Ways to Play Long Odds offers three strategies for placing speculative trades. Here, readers will find an “anti-speculative” strategy that’s less risky than buying stock. It’s called the naked put in a liquid  exchange-traded fund (ETF) such as SPY, QQQ, IWM, DIA or XLU. … Continued