To The Moon

The VIX Index, officially known as the Chicago Board Options Exchange Volatility Index, is calculated using the prices of near-term and next-month options with expiration dates ranging from 23 to 37 days. It measures the expected 30-day annualized volatility of the S&P 500 Index.Simply put, the VIX measures the implied volatility of the S&P 500 Index. A higher VIX value indicates greater expected market volatility. Given the importance of the S&P 500 Index, the VIX is often referred to as the "fear gauge" of the market, signaling potential risks.The "Rule of 16" for VolatilityInvestors can trade VIX futures and options directly. Despite its popularity, many investors do not fully understand how the VIX measures option volatility, its implications, and how to estimate its most a

On Wednesday, the Federal Reserve lowered the federal funds rate target range by 25 basis points to 4.25%-4.50%. This marks the third consecutive rate cut following the initiation of an easing cycle in September. After a cumulative hike of 525 basis points from March 2022 to July last year, the Fed has now cut rates by a total of 100 basis points over these three instances.Since U.S. President Donald Trump secured his second term, Tesla has been riding a wave of positive sentiment, with its stock price surging over 90%. On Tuesday, Tesla closed at an all-time high for the fifth consecutive trading day, gaining 3.64% to finish at $479.86.However, on Wednesday, Tesla’s stock price dropped over 8% at market open, wiping out $131.5 billion in market value (approximately ¥962.5 billion). By the

On December 18th, Micron will release its latest earnings. Each time the company announces its earnings, it may also signal a good trading or investment opportunity.For $Micron Technology (MU)$ earnings, key factors to observe include earnings growth, profitability, and inventory changes. In terms of revenue growth, it's important to monitor changes in memory chip prices, market share changes, and the shipment status of HBM products to determine whether the revenue rebound trend can continue.On December 17th, Eastern Time, several major Wall Street firms updated their ratings on $Micron Technology (MU.US)$, with target prices ranging from $140 to $180. JPMorgan analyst Harlan Sur maintained a Buy rating wi

1. Single Earnings Performance Analysis1. Bullish Strategy: Long CallPerformance in this Earnings Report:If you bought a Call Option with a strike price of 195 and a Delta of 0.25 the day before the earnings release, the contract surged 1260.3% after the report, marking the highest single return in history.Review of the Past 12 Earnings Reports:Success Rate: 3 out of 12 successes, 9 failures.Returns from the three successful instances: 293.2%, 450.3%, 1260.3%.2. Optimized Strategy: Call Spread or Put SpreadUsing a Call Spread for bullish trades significantly improves the win rate, with most returns exceeding 100%.Put Spread strategies also demonstrated superior stability in returns, making it a solid choice for conservative investors.3. Long Volatility Strategy: Long StranglePerformance in

Starting a Rate-Cut Cycle: Strategies for a Steady Long Position in U.S. TreasuriesDespite a strong economy, bond investors are steering clear of long-term Treasuries as the Federal Reserve begins cutting interest rates.In the traditional stock and bond markets, recent performance has been lackluster compared to the more attractive returns in cryptocurrencies like Bitcoin. For instance, the Dow Jones has posted seven consecutive losing sessions, and U.S. Treasuries experienced a five-day losing streak last week.The 10-year U.S. Treasury yield rose sharply for five consecutive days last week, cooling off some of the post-election stock market rally. Yields surged by 24 basis points—the largest weekly gain this year—without discouraging speculative activity.The poor performance in traditiona

On Wednesday, Tesla ($TSLA) surged 5.93%, reaching a new all-time high and topping the U.S. stock market with a trading volume of $42.676 billion. CEO Elon Musk became the first person in the world to achieve a net worth exceeding $400 billion, marking a significant milestone as the world’s richest individual.Key Catalysts Driving Tesla’s PerformanceSpaceX Internal Stock Sale: An internal stock transaction at SpaceX contributed significantly to Musk’s net worth, increasing it by approximately $50 billion, pushing his total to $439.2 billion.Tesla’s Cybertruck Potential Entry into China: Tesla’s Cybertruck was recently listed on China’s Ministry of Industry and Information Technology (MIIT) energy consumption query website. Although passing the energy consumption declaration is just one of

Broadcom (AVGO) is set to announce its earnings for Q4 FY2024 after the market closes on December 12th, Eastern Time. Investors are encouraged to stay tuned.Institutional ProjectionsBroadcom is expected to achieve revenue of $14.066 billion for Q4 FY2024, marking a 51.33% year-over-year increase, while earnings per share (EPS) are projected at $0.70, reflecting a 14.91% year-over-year decline.Performance HighlightsUnderpinned by the demand from tech giants, Broadcom has propelled its growth in the communications chip industry through a strategic mix of AI chips, communication transmission technology, and cloud virtualization software. This has driven both operating performance and stock price surges, briefly positioning Broadcom among the top ten U.S. companies by market capitalization at

Over the past week, traders have accumulated large amounts of call options on leveraged ETFs tracking Chinese indices. Following China's signals of increased economic support next year, stock prices soared, yielding unrealized gains of over $130 million.Option Buying Spree on Leveraged ETFsThe focus has been on two ETFs: Direxion Daily CSI 300 China A Bull 2x Shares (CHAU) and Direxion Daily FTSE China Bull 3x Shares (YINN). These ETFs, with a combined market cap of around $2.5 billion, trail larger funds like iShares China Large-Cap ETF (FXI), which boasts an $8 billion market cap.From November 29 to last Friday, traders purchased nearly 180,000 call options on YINN with a strike price of $27 expiring in January 2026, at an average cost of $9.35 per share. On December 2, traders bought ap

On Friday, Tesla's stock surged more than 5%, bringing its year-to-date gain to over 56% and pushing its market cap to $1.25 trillion. As Tesla’s stock price soars, Elon Musk’s net worth has reached a new milestone. According to the Bloomberg Billionaires Index, Musk's net worth hit approximately $362 billion at Friday’s close, a $133 billion increase year-to-date, making him the wealthiest person with the greatest wealth gain this year.One notable factor behind Musk’s skyrocketing wealth is the connection to Donald Trump’s election victory. Since Trump’s win, Tesla’s stock has risen nearly 55%, adding over $440 billion in market value. According to filings released by the U.S. Federal Election Commission on the evening of December 5, Musk donated $259 million (approximately RMB 1.883 bill

The leader of American retail investors, Roaring Kitty, is back with a post! He shared an image inspired by the cover of Time magazine, featuring a blank computer screen resembling a YouTube media player. This seems to be a modified version of Time's December 25, 2006, cover, when "You" (the American public) was named Person of the Year.Since the post didn’t include any explanatory text, day traders quickly began speculating. For example:Unity Software (ticker: U) surged by as much as 8.2% intraday before closing up 4.9%.Clear Secure (ticker: YOU) reversed its earlier 4.6% decline but ultimately fell 1.1%.As a classic meme stock, GameStop (ticker: GME) soared 14% at one point before giving up most gains, closing up 5.9%. Another popular meme stock from the same era, AMC Entertainment (tick