0DTE Options: New Contracts on TLT, Commodities ETFs
0DTE options, which expire on the day of trading, have gained popularity and expanded to include Treasury and commodity markets. Nasdaq recently introduced these options on widely traded ETFs covering gold, silver, oil, natural gas, and long-term Treasuries.0DTE Options: Definition, Strategy, and RiskThese options, known as "same-day expiration options," are used for very short-term trading and are considered highly speculative due to their brief time frame. Their value is influenced by factors like the underlying asset's price, volatility, and time until expiration.The five ETFs for which Nasdaq added zero-day options contracts are: SPDR Gold Trust (GLD) iShares Silver Trust (SLV) United States Oil Fund LP (USO) United States Natural Gas Fund LP (UNG) iShares 20+
Building a Robust Portfolio: The Ultimate ETF Selection for Savvy Investors
ETFs typically exhibit lower volatility compared to individual stocks while offering exposure to a diverse portfolio of stocks.ETFs, or Exchange-Traded Funds, present a versatile investment landscape, spanning major indexes, global regions, and specific sectors. In volatile markets, ETFs mitigate risks associated with individual stocks, offering lower volatility compared to individual stocks and greater accessibility than traditional mutual funds, often with reduced fees. Explore our curated list of the top 7 ETFs for potential investment opportunities.Vanguard 500 ETF (VOO)Originating the index fund, VOO offers a cost-effective S&P 500 index investment with a mere 0.03% expense ratio.As the third-largest ETF, it combines low costs, diversification, and exposure to renowned blue-chip s
Riding the Rollercoaster: Why Oil Price Volatility Spells Opportunity for Traders
In recent developments, media reports have hinted at the possibility of OPEC+ considering a significant cut in daily oil production during their upcoming meeting. This speculation led to a substantial recovery in international crude oil prices, surging over 4% in a single day on Thursday. This marked the most notable daily increase since tensions escalated in the Gaza Strip a month ago, following four consecutive weeks of declines.Oil Market Dynamics and Influences:The oil market is currently focused on monitoring various factors, including unexpected surges in U.S. crude oil inventories, record-high oil production, and data reflecting the state of the Chinese real estate market. Some analysts argue that the sharp decline in oil prices on Thursday may have been an overreaction, considering
Beyond Stocks: Index Funds Demystified for Every Investor
Index funds are straightforward investments mirroring market indices, typically composed of stocks or bonds. These funds invest in all index components and are managed to match index performance.1. Choosing an Index:Numerous indices are available for tracking using index funds.Popular choices: S&P 500 (top 500 U.S. companies), Dow Jones, Nasdaq, Russell 2000, MSCI EAFE, and more.Specialized indices cover industries, countries, and styles.2. Selecting the Right Fund:Once an index is chosen, multiple funds may track it.Key considerations:Which fund closely mirrors index performance?Which fund has the lowest costs?Are there any restrictions on investing in the fund?Are there other funds from the provider aligning with your interests?3. Purchasing Index Fund Shares:Open a brokerage or mutu
Accelerating Wealth: Unleashing Financial Freedom through the Magic of Compound Interest
In 2007, Warren Buffett initiated a decade-long challenge for hedge fund managers to outperform the S&P 500 index fund. After ten years, the results were clear: the S&P 500 achieved a 125.8% gain with an 8.5% annual return, outshining the best-performing hedge fund at 87% and 6.5% annually. Even the worst-performing hedge fund yielded only 21.7% with a 2% annual return. Buffett emerged victorious, affirming the supremacy of the S&P 500.Buffett attributed his success to two main factors. Firstly, he highlighted the difficulty for skilled investors to consistently beat the market. Long-term success is rare, urging investors to focus on growing alongside the market rather than outperforming it.The second factor was the management fees charged by hedge fund managers. Buffett opted
Last week, ETFs attracted a total of $16.8 billion in capital, with U.S. fixed-income ETFs leading the way with $13.7 billion in inflows, followed by U.S. equity ETFs at $4.4 billion and international ETFs at $744 million, according to etf.com.The Wall Street market wrapped up its best week in 2023 to start November, with the Dow Jones Industrial Average and the S&P 500 gaining approximately 5% and 6%, respectively. The tech-heavy $Nasdaq(NDAQ)$ Composite Index outperformed, rising over 6.6%. This rally was driven by increased investor confidence, solid corporate earnings, and indications that the Federal Reserve's aggressive interest rate hike campaign may be coming to an end.Last week, the Federal Reserve voted to maintain interest rates at
Cathie Wood's ARK Innovation Just Had Its Best Week Ever, These Huge Winners
Last week, the S&P 500, Dow Jones and Nasdaq had their best gains of 2023. But the Ark Innovation ETF had its best week ever, up 18.6%.Cathie Wood's Ark Innovation ETF (ARKK) has a history of consistently outperforming the broader market, regardless of whether the market is trending upward or downward. In the previous week, major indices like the S&P 500, Dow Jones, and Nasdaq (NDAQ) experienced their most significant gains of the year in 2023. However, the Ark Innovation ETF delivered its most remarkable performance ever, with an impressive increase of 18.6%.This extraordinary performance can be attributed to substantial movements in some of its key holdings. For instance, Verve Therapeutics (VERV) saw a substantial weekly gain of 76% due to an expanded partnership with Eli
These ETFs Have The Best Value for Three-month Drawdowns among Global Equities
Below are the best “bang-for-your-buck” tail hedging ETTs, according to Barclays’ $Equity(EQR)$ Research, published on Thursday.The screen shows the best and worst among a universe of 29 cross-asset ETFs with liquid options for the best equity downside hedges, the report said.Barclays identified the top 10 drawdowns in any three-month non-overlapping period since 2008 for global equities. They also calculated the rank based on the average ratio of historical drawdowns over the current three-month, 25-delta puts.Green shows the highest put payout ratios at current costs for the top 10 global equity drawdowns, the ones in red show the lowest.“At current costs, short-dated puts on Financials (XLF), Industrials (XLI), and Russell 2000 (NYSEARCA:IWM) wo
Small-cap Index and Stocks Rebounding: $TNA & $UWM ETFs to Follow?
According to @sentimentraderThis is the 24th time the $iShares Russell 2000 ETF(IWM)$ closed at a 52-week low, then surged to its best 4-day rally in at least 3 months. A year later, the small-cap index was higher 100% of the time with a median return of +25.6%.ImageIn Thursday trading we saw many small caps, but growth stocks jumped by 2 digital %.In the ETF markets, the $Direxion Daily Small Cap Bull 3x Shares(TNA)$ was up over 8% and ranked #2 on Thursday, while the $ProShares Ultra Russell2000(UWM)$ was up over 5% and ranked #9.On a 5-day basis, the $Direxion Daily Small Cap Bull 3x Shares(TNA)$ has gained 10.11%, and th
ETF Asset Report for October: S&P 500 & Treasuries Top
After a downbeat September, October, too, remained depressed for Wall Street. High oil and gas prices, still-high inflation, and the Fed’s policy tightening spree, along with the resultant rise in bond yields, kept the market volatile.The S&P 500, the Dow Jones and the Nasdaq have lost 2.8%, 1.5% and 3.9% in the past month (as of October 30, 2023) due to rising rate worries. U.S. benchmark treasury yield started the month at 4.69%, reached a high of 4.98% on Oct 19 and was at 4.88% on Oct 30. Apart from higher rates, there was heightened geopolitical crisis due to the war between Israel and the Gaza-based militant group Hamas. This has sent oil prices higher.Meanwhile, the U.S. GDP data for Q3 came in upbeat. The United States witnessed substantial economic growth in the third quarter