Tuesday, March 26th, 2019

How Will the Rally End in 2018?

All good things come to an end that that includes the current stock market rally. But when and how will the rally end? CNBC quotes Bank of America saying that the end of the bull market will be in 2018.
Bank of America Merrill Lynch sees a scary good news-bad news scenario [...]

What Are the Pros and Cons of Investing in Stocks versus Bonds?

June 29, 2016 by Jim Walker  
Filed under Options Trading Tips

The Brexit vote in which British citizens choose to leave the EU caused such a huge stock selloff that dividends on stocks now yield more than 10 year US Treasury bonds. What are the pros and cons of investing in stocks versus bonds? CNBC notes that despite the volatility of stocks it [...]

Slow and Steady Fed Rate Hikes

The financial markets have been waiting to see just how soon and how fast the US Federal Reserve will raise interest rates now that the recession is well on the wane. It appears that slow and steady Fed rate hikes are likely. CNN Money notes that Wall Street is happy with the [...]

Options Trading on the American Economic Recovery

When the chairman of the Federal Reserve said that the Fed was going to phase out its stimulus program stocks fell. Then everyone seems to have remembered that Mr. Bernanke said that the Fed would phase out its stimulus program based on a continued economic recovery and stocks rose again. Given the uncertainty that often [...]

Profit from Interest Rate Options

Options traders take interest rates into consideration when trading options on stocks, commodities, and foreign exchange. However, it is possible to profit from interest rate options directly as well. Interest rate options are traded on the Chicago Board Options Exchange, CBOE. Options traders can purchase both puts and calls on the [...]

What Are Options on Interest Rates?

Interest rate options are cash settled options on the yield of US Treasuries. What are options on interest rates good for and who trades them? They are European-style in that they are only settled on their expiration date although they can be bought and sold throughout the duration of the contract. Those buying interest rate [...]