We've been keeping a keen eye on Uranian stocks over the past few weeks. Throughout the recent broader market weakness, it became a common refrain in our internal analyst meetings: "...we're still seeing relative strength in Uranium stocks."
When we keep saying that over and over, maybe the market is trying to tell us something? *slaps head*
The stock that seems the strongest to us in the sector has been showing signs this week that it's ready to break out. So let's get to work.
Today, it looked like the market wanted to continue yesterday afternoon's powerful late rally.
Well, it was not to be, as stocks have broadly declined since lunchtime and indices are in the red as I type this.
For me, this offers yet another opportunity to sell some delta-neutral options premium to continue providing some ballast to the directional bets in my portfolio.
With volatility still up since Friday afternoon's stock market freakout, we're going to continue to take advantage of this volatility rise to add an additional, much-needed delta-neutral credit spread to our portfolio to diversify our risks somewhat.
So today I'll be positioning into an index ETF near the top of the implied volatility charts.
"Jackson Hole" has delivered volatility once again. Seems we can always expect fireworks when the bigwigs gather at a luxury resort in the mountains. Must be nice...
We're going to take advantage of some of this volatility by positioning into a delta-neutral credit spread in the highest implied volatility ETF currently on the board.
Today's trade comes from the latest Young Aristocrats report. And today's dip offers us a chance to get into this trade with a very nearby risk management level (today's low). Either this stock is going to make a run or it's going to fail, and we'll likely find out quickly.
As such, we're taking a long position in October call options.
...but it might win us cash-money gains, which is all we're really here for anyway. Give the participation trophies to the strivers.
Today's trade comes from a "dirty" sector. One some investors don't like to talk about in polite company. And it certainly won't win us any friends in the ESG crowd. But again, who cares?
It's a big wide world out there. Luckily for us investors in the U.S., we aren't just limited to trading domestic companies. Often via ADRs, we are able to participate in opportunities in the very best foreign companies and conglomerates.
And right now, there are good opportunities shaping up in if we look overseas at some banking stocks.
Earlier this week, we got stopped out of Vertex Pharma $VRTX for a manageable loss. It happens. Now today, a vortex is pulling us in the direction of another Vertex -- Vertex Energy $VTNR. Crazy, huh?
In the end, stocks are all just ticker symbols with dollar signs attached to them that convey any kind of meaning to us. But nonetheless, what are the odds?
Weird coincidences aside, we're liking the setup in this energy name so let's get right to it.
While I prefer to let stocks prove themselves to me before taking a position, sometimes a situation sets up where the stars are aligning for a low risk bet that makes it worth the effort to get ahead of the crowd.
One such situation has developed in a name discussed recently in our Hall of Famers report.
We've experienced a pretty powerful bear market rally on the heels of yesterday's Federal Reserve interest rates announcement. Whether or not it sticks is anybody's guess. But one name in the financials space has stood out for its relative lack of participation in the recent rally off the bear market lows.
Stocks like these are the ones we want to leverage into bearish portfolio hedges. So let's get right to it.
Ok, maybe that title is a little dramatic. I couldn't help myself. I recently had a conversation with a trader friend who was dunking on Gold Bugs about the lack of income stream from Gold. It's just a damn rock! he said.
Anyway, I don't have any strong opinions about Gold either way. I just like to follow price and volatility. And right now, the options market may be offering us a tempting opportunity to collect some premium as the recent gold selloff has spooked the gold bulls a little bit.