HiPOS Trade Update: On the Call Side
New HiPOS Conservative Trade Details - The ZEGA trading team found a new short call spread to put on this morning in the HiPOS conservative accounts.
Probability of Recession? | Explaining How US Treasury Bond Auctions Work | S&P 500 Index Member Changes | Option Premium Intrinsic vs. Extrinsic
Derek and Jay review the Goldman Sachs probability of recession and Fed rate forecast for 2024. Then they do a deeper dive on key aspects of US Treasury Bond auctions.
Stock Market Returns After First Rate Cut | Yield Curve Preceding Recessions | Investors Rooting for the Wrong Thing
Derek does a deep dive asking the question why is everyone rooting for the Fed to lower rates? If the Fed must lower interest rates, doesn’t that mean there is trouble? Should investors instead be rooting for stable but higher rates where the long end un-inverts as a proxy for higher growth?
ZEGA’s October 2023 Performance Numbers Release
Option Selling ETFs Boom | Probability of Future Fed Moves | Bad News is Good News on Employment
Derek and Jay ponder whether the Fed is truly done and if the street is too optimistic on rate cuts in 2024. Plus, they discuss new data showing option selling ETFs are having record assets between inflows and new entrants.
HiPOS Weekly Update: Positive Time Decay Mutes Negative Market Moves
HiPOS Conservative Trade Update - With only 8 trading days left until expiration, the primary HiPOS trade is sitting with an unrealized profit despite the market being down from where it was on entry.