3 Trades You Could Make in the Current Market
By:Ryan Gaynor
This week on Let Me Explain, Christopher Vecchio and Tom Sosnoff discuss several key areas of the financial markets, starting with Tesla's (TSLA) considerable influence on the NASDAQ, and the impact of its recent delivery misses. They then look at a bullish markets outlook, anchored by historical patterns showing robust first-quarter performances often leading to fruitful springs and second quarters. Further scrutiny is given to the bond market's sensitivity to fluctuations in commodity prices, particularly noting the repercussions of recent shifts in oil prices. Tom gives his input on strategies such as his approach to shorting Tesla puts amid the automaker's delivery uncertainties and the exploration of mean reversion trades in commodities, underscoring the importance of adopting a long-term perspective for success in trading and investment decisions. The discourse concludes with an examination of individual stock performances, notably the comparison between Apple (AAPL) and Microsoft (MSFT), and the analysis of sector rotations indicative of mid-bull market conditions, recommending capitalizing on market dips as strategic opportunities.
This week in our 0DTE Market Measures segment Tom and Tony, delve into the essence of using the CBOE Volatility Index (VIX) and CBOE 1-Day Volatility Index (VIX1D) for trade decisions, explaining that while both tend to overstate moves, the VIX one day shows a greater expectancy of outside range moves, providing a nuanced strategy for strike placements. The analysis concludes that both indices are useful but suggest different approaches to managing trade expectations and potential risk, offering insights valuable to traders looking for nuanced market strategies.
In this week's Cherry Picks, Tom Preston digs deep into the intricate relationship between gold and silver, highlighting their high correlation and its implications for trading these popular precious metals. They introduce a significant insight into the gold-silver ratio, currently standing at 88:1, which serves as a critical factor in devising pairs trading strategies—particularly emphasizing the potential for bullish trades in gold and bearish in silver based on speculated ratio adjustments. The conversation further explores practical trading strategies, such as gold iron condors and poor man's covered calls in silver, illustrating the diversity and complexity of trading within these markets. Practical applications on trading platforms emphasize the importance of implied volatility and trading probability in shaping strategies, offering a bearish outlook on gold and a bullish perspective on silver, aligned with the trader’s speculation on the gold to silver ratio changes.
Ryan Gaynor is a video content specialist at tastylive.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.