Market Ignores Hawkish Fed, Cheers CPI
The Fed rate frenzy is almost getting as hyped as seeing Roaring Kitty return to trading GME after years of being silent. All investors watched as the Consumer Price Index (CPI) numbers signaled ongoing disinflation. While stocks shot higher on Wednesday, investors ignored the Fed presentation later in the day. That was a mistake as the Fed laid out a troubling scenario.
Let’s start with the good news. Consumer Prices are rising less than the consensus range. For example, the year-over-year number was expected to increase by 3.4%, whereas the actual CPI number came in at 3.3%.
45 DTE: The Sweet Spot for Options?
For short-term option traders, 45 days to expiration might sound like a lifetime. But research shows some benefits associated with this time frame.
Find out how we’ve been utilizing longer-dated options in the pursuit of short-term profits.
Finding Income in Unlikely Places
The low-volatility environment has been a challenge for option sellers. In our Options Income Weekly program, we typically focus on selling puts and calls on established stocks.
However, with options premium hard to come by, we’ve had to get creative…
2 Unusual Stock Ideas for the Next 12 Months
If you’re looking for a stock not named Nvidia, I have a couple of counter-intuitive plays for you today.
While inflation continues to take its toll on the less well-off, luxury goods have outperformed expectations. There’s a stock I’ve been watching for months – is it time to buy?
Plus, a company with a huge 5-year EPS Growth Rate that’s already “putting the work” on earnings success.
See my ideas here…
Is It Time To Get Into Value Investing Again?
Mega-cap tech stocks continue to dominate the market, but beneath their success lies a growing unease among investors about the Federal Reserve’s interest rate policies. While these tech giants boast substantial cash reserves and can withstand a “higher for longer” strategy, the average S&P 500 stock is more vulnerable than ever to rising yields. Although the S&P 500 is up for the year, not all companies are sharing in the glory.
We Stayed in May and Earned $929 in Cash
Options Income Weekly members earned twice as much cash in May as they did in April, as the broader market rebounded. However, one of those winning trades was on an underperforming tech stock, illustrating the ability of option sellers to take advantage of post-earnings overreactions.
Find out how a selective and disciplined approach led to a consistent income stream and why we’re prepared for what lies ahead.
Is It Time To Sell In May and Go Away?
It’s the end of a wild month. We saw Nvidia blow out earnings once again, treasury yields spiked, putting a damper on the bull rally, and now the market is wondering if a July Fed cut will happen. With most of this earnings season out of the way, rising yields are the headwind of this market moving higher. But why are they rising now? What’s in store for June? Let’s review what the charts tell us.
Finding Opportunities Amid Record-Low VIX
Volatility is near record-low levels, which is prompting us to add new tactics to our trading arsenal. Find out how Income Masters members locked in a 5.3% return on Microsoft (MSFT) — in just three days — by utilizing a neutral-to-bullish strategy that benefits from time decay.
FRDP Special – For Chris Y – Nextracker (NXT)
During our Investor’s Blueprint Live conference in February, and again in an article here on Traders Reserve, I recommended Nextracker (NXT) as a post-IPO, small-cap stock worth owning as a ‘foundation’ stock in the solar industry.
Today, I want to share the value of assessing your stocks across different timeframes and validating whether shares should still be held.
But, I’m going to do it in an unusual way…
Alternative Approach to Nvidia’s Earnings Pays Off
Now that the Nvidia earnings frenzy has passed, let’s look at how we capitalized on the volatility surrounding the AI leader’s announcement with a trade that yielded a nearly 11% return. And the best part is we didn’t have to guess what the company would say or which way the stock might trade post-earnings.
