With the US financial markets worried about several key economic matters—oil price, OPEC decision, Fed policy, and whether or not the debt ceiling will be raised—there seems to be a new trade emerging: buy puts.
In recent days, put activity on the S&P 500 ETF (SPY) has been through the roof. A full hour after market open, investors have taken an interest in September dated options. Of the most popular are the 90, 94, and $95 strikes. These strike prices correspond with an S&P500 value of 900, 940, and 950, respectively.
Why buy puts?
Futures and Commodities, Investing, Stocks
Groupon’s IPO is a hot topic on Wall Street. After being titled as the “fastest growing company” by Forbes magazine, some investors are getting ready to pile in big. But we have to wonder: why isn’t Groupon profitable yet, and is there any chance that this company will ever deliver value to its shareholders?
I’m not so sure.
Why the Groupon IPO is Concerning
There have been many complaints of a consumer credit crunch, especially coming from those in the market for a new home. While the money isn’t always easily found, there are more than a few opportunities for borrowers to get into the real estate market cheap.
Here’s what you need to know to get a loan
Investing, Real Estate
Charles Schwab (SCHW), one of the leading brokerage firms in the United States, today announced that it would take on exchange-traded funds for its asset management business. The recent pivot would mean that investors would be able to buy and sell exchange-traded funds through their 401ks, reducing their overall annual fees.
Never has a company been so aggressive with exchange-traded funds.
Why Asset Managers Hate ETFs