Wither the Banking Sector... by design. All part of the Plan. Larger Regional Banks will become the very next too-big-to-fail entities. A good old-fashioned rollup, kinda like Bush Sr's criminal S&L Scandal Part tres. _____________________________________________________________________ Bank on it. A threat to financial stability? M&A isn't going to go all...
Oh my, death on a stick once again. Banks are twisting in the wind. Health? Hell No. ______________________________ Use the Dollar Tool now. Forget Stonks they are cooked. Markets go nowhere without Financials. Homies' wreckage just beginning. Bonds are already in ruin. Crypto, ready for the beating. Gold, a shiny useless rock. 22% more to go... adios.
SPDR S&P Regional Banking ETF ( AMEX:KRE ) Sector: Miscellaneous (Investment Trusts/Mutual Funds) Market Capitalization: $-- Current Price: $63.44 Breakout price: $66.00 Buy Zone (Top/Bottom Range): $62.20-$56.55 Price Target: $90.00-$91.00 Estimated Duration to Target: 496-509d Contract of Interest: $ZM 6/16/23 70 Trade price as of publish date: $4.70/contract
... for a 1.76 credit. Comments: Popped to the top of my screener with an IVR of 95 and a 30-day of 45.1. Selling the 16 delta strikes for a 1.76 credit on buying power of 7.06; 24.9% ROC at max; 12.5% ROC at 50% max. Will look to take profit at 50% max, roll sides on approaching worthless/side test.
As mentioned in XLF idea, Financial charts looking bullish with a nice weekly box breakout. KRE regional banking etf : - Look for retest of box or possible sellers to step in for a push down to 8EMA green line - My bias and bull case - continuation , especially with the MACD bullish cross confluence. I'm long Dec 72c but can also form a spread with the Dec...
Regional Banks look terrible here and have shown relative weakness recently as the indices have been making new highs. If the market decides to correct, I expect KRE to see some more downside.
TCF bank began merging in to Huntington Bank after receiving shareholder approval, ticker HBAN, in March of 2021 with the intention of being completed within the year. This will put it in the top 10 regional banks and will rank 5th in 70% of deposit markets. Regional banks are set to benefit from rising rates and inflation. The cost synergies and the ability to...
Financial sector looks pretty good, showing relative strength, despite choppy market. Nice wedge breakout on heavy volume, with excellent mirror support level retest. We are looking for 71.30 level breakout. SL 67.80
... for a 1.08/contract credit. Notes: I already have some January on, and there is no February currently, so going out to March with 30-day still >35% at 36.5% and expiry specific at 38.4%. As with my other IRA short put trades, I'm fine with getting assigned, selling call against, particularly since it has a small dividend to pay you while you wait to exit any...
EARNINGS: There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both,...
EARNINGS: No options liquid underlyings announcing earnings this week that meet my criteria for a volatility contraction play, although ORCL (24/31) and WORK (2/33) both announce and could be played in some other way. EXCHANGE-TRADED FUNDS RANKED BY THE PERCENTAGE THE JANUARY AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: GDXJ...
EARNINGS: It's a light week for earnings announcements, which means it's an even lighter week for options liquid underlyings, none of which meet my cut-off for 30-day implied >50%. EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE JANUARY AT THE MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: XOP (18/59/15.8%) GDXJ (16/42/13.2%) XLE (26/46/11.6%) KRE...
EARNINGS: Only one underlying makes my cut for a earnings announcement volatility contraction play: GPS (25/70/14.9%),* which announces on Tuesday after market close, so look to put on a play in the waning hours of Tuesday's session. To me, it's small enough to short straddle, with the pictured setup paying 3.72 (.93 at 25% max). Alternatively, go short...
... for an .81/contract credit. Notes: With 30-day at 57.4% and expiry-specific at 42.3%, selling premium in one of the underlyings on my IRA shopping list. (Current yield 3.02%). I would ordinarily just ladder out, but this isn't exactly weak relative to where it's been, so want to keep powder dry for it in the event it weakens further. 2.07% ROC at max as a...
EARNINGS-RELATED VOLATILITY CONTRACTION PLAYS: LB (7/69/16.0%):* Announcing Wednesday after market close. ARMK (11/56/13.1%): Announcing Tuesday before market open. TGT (30/39/8.6%): Announcing Wednesday before market open. Honorable Mentions: LOW (23/39/8.6%): Announcing Wednesday before market open. HD (17/31/6.7%): Announcing Tuesday before market open. WMT...
Regional banks have been an absolute dog as of late. They lag almost everything, other than energy. This sector has shown some strength since the “Tech Wreck”. So why do we focus on this group? Well it is part of a larger story…. interest rates. Let’s hop on the chart. So here we have the charts of KRE. We have seen a downward sloping trendline that was intact...
EARNINGS: CCL (28/88/25.9%) and DAL (18/77/22.1%)* announce earnings on Thursday. The DAL November 20th 21 delta, 2 x expected move 26/41 short strangle is paying 2.41 or 7.6% as a function of stock price (1.20 at 50% max; 3.8% as a function of stock price). I've pictured a short put here as the simplest play to get in on a sector that has been hammered by the...
... for a 1.49 credit. Notes: With its current yield of 3.66%, looking to pick up some shares lower or just keep the premium. Background implied at 44.9% with an ROC of 2.50% at max as a function of notional risk, 9.71% annualized.