Tuesday, December 26, 2023

⚠️Has This Popular Trading Strategy Finally Gone Bad?

Good morning. It's only been since early 2022 since daily options have started trading on some...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. It's only been since early 2022 since daily options have started trading on some market indices such as the Nasdaq and S&P 500. Traders now love these options, known as 0dte, short for zero-days-to-expiration. A trader can make an investment at the market open at 9:30 A.M., assured that it will expire at 4:00 P.M. Eastern time.

These options have now started to account for over half of all options trades on some days. And, they're also starting to get the blame for unusual market moves. Last Wednesday's big market drop was attributed in part to a surge in demand for put options expiring just a few hours later, which caused market makers to hedge, and helped fuel a selloff.

The jury is still out on whether that was truly the only factor at play. In a complex economy, it's unlikely. But traders using these products should be reminded of the risks – especially for those who were on the wrong side of that trade and took a big hit.

Now here's the rest of the news:

Sponsored Content
All Time High Markets: What's Next?
All Time High Markets: What's Next?

Options traders are flocking to this stock before the new year like never before, and the reasons are mind-blowing.

The stock market has surged to new all time highs, propelled by the Fed's pivot, fostering an atmosphere of euphoria across the markets.

Here's the thing: while things seem great, the opportunity to do better always exists.

Curious about a smarter way to forecast trend reversals, like this?

Twist Bioscience ($TWST) saw over 63% gains in 28 days!

Please note examples are from past data and so are success stories. Trading involves financial risk and is not suitable for all investors. Past results do not guarantee future performance.

Fear of missing out wants you to rush to the markets...

Or maybe you've had some fantastic trades, but let's challenge that.

What if you could consistently spot those reversals effortlessly and turn each trade into an even greater success story?

This "All-time high" strategy will help you master your trading impulses.

It boils down to forecasting trend reversals to maximize every trading opportunity.

MARKETS
DOW 37,385.97 -0.05%
S&P 4,754.63 +0.17%
NASDAQ 14,992.97 +0.19%
*As of market close
Markets were closed on Monday, in observation of Christmas Day.

Today's TOP TIPS
Markets Weren't Expecting This Trend – But It Can Lead to Solid Profits Now
As the stock market got mauled by the bear in 2022, one sector held its own: Energy. The trend has reversed in 2023, as the sector has been whipsawed by fluctuating oil prices.

But there's another twist to this trend. And understanding it will help investors navigate moves into 2024. While energy prices have been declining even as OPEC nations have cut their production, this new trend hints at the profits available now.

» FULL STORY

Insider Activity Report: Nucor (NUE)
Nicholas Gangestad, a director at Nucor (NUE), recently bought 1,000 shares. The buy is an initial position for the director, and came to a total cost of $176,609.

This is the first insider buy since a major holder added $6.6 million worth of shares back in August. Otherwise, company executives have been moderate sellers of shares this year, including the company's CEO and COO.

» FULL STORY

Unusual Options Activity: Campbell Soup Company (CPB)
Processed food producer Campbell Soup Company (CPB) has had a rough year, with shares down 25 percent. One trader sees further weakness into the first month of 2024.

That's based on the January 19, 2024 $41 puts. With 24 days until expiration, 3,498 contracts traded compared to a prior open interest of 104, for a 34-fold rise in volume on the trade. The buyer of the puts paid $0.40 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Unemployment Rate Stayed at Record Low for 2022

The annual jobless rate fell to 7.5 percent in 2022, according to data from the Bureau of Labor Statistics. The rate is the lowest on record, and shows the strength of the job market over the past year. Just 13 million Americans experienced unemployment last year, compared to 16.1 million in 2021.
Russian Economy Faces Property Bubble

The Russian government has provided funds at low interest rates for prospective buyers, which has helped fuel a property bubble. Housing prices are rising considerably in Russia, even as the ruble continues to trend lower and war costs continue to mount. Mortgage volumes have jumped 72 percent to nearly $70 billion in Russia this year.
Container Rates Rise to $10,000

The cost to ship a container globally has risen to $10,000, as 158 vessels carrying $105 billion in ocean freight have had to divert away from the Red Sea. The jump in prices is about a 40 percent increase, and reflects the higher costs to ship goods around Africa. Many companies are looking at better ways to move freight and avoid further high costs.
Nike Unveils Cost-Cutting Plans

Shoe and sports apparel designer and manufacturer Nike (NKE) has revealed a cost-cutting plan that would save approximately $2 billion. That, combined with an earnings beat on their second-quarter earnings, may lead to improving conditions for the company next year.
Hyperloop One to Shut Down

Hyperloop One, a travel startup company backed by Richard Branson's Virgin Group, will cease operations at the end of the year. The company has raised and spent hundreds of millions of dollars since 2014, in an attempt to create vacuum-sealed tubes that could carry people and cargo at super-high speeds.

S&P 500 MOVERS
TOP
ANSS 18.429%
MRNA 4.276%
ALB 3.451%
ALLE 2.413%
DISH 2.045%
BOTTOM
NTES 15.468%
NKE 11.789%
SNPS 5.985%
VFC 2.918%
CMI 2.617%

Quote of the Day
While the year ahead holds the promise of further increased inventory and enticing deals that consumers have eagerly awaited, 2023′s high interest rates are expected to linger, provoking conflicting market dynamics.
- Jessica Caldwell, head of insights Edmunds, on the possibility for stronger car sales in the U.S. compared to 2023. For the year, between 15.6 and 16.1 million vehicles were sold, an increase of 1-4 percent over 2022's sales.

Sponsored Content
We Called It - +37% Gains in 32 Days! What's Next?
We Called It +37% Gains in 32 Days! What's Next?

Unless you've been living under a rock, you know that the market's hope of a soft landing drove a rally last week.

But what you probably don't know is which stock soared nearly 30% in just 10 days.

✅️ Locking into ripe stocks
✅️ Forecasting 1 - 3 days in advance
✅️ Quickly sorting through thousands of stocks and being confident in the ones carrying maximum momentum

That's when you can find hidden opportunities like this:

Please note examples are from past data and so are success stories. Trading involves financial risk and is not suitable for all investors. Past results do not guarantee future performance.

Boeing (BA) saw nearly 38% gains in 32 DAYS! And VantagePoint artificial intelligence called it.

And these stocks are up next, for next week >


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