Please Watch My New YouTube video: Hot Button Moves Now! Short regional banks

Please Watch My New YouTube video: Hot Button Moves Now! Short regional banks

I’m adding a bit more timeliness to this weekly video slot by moving away from my Trend of the Week series and changing it to “Hot Button Moves NOW” to highlight action you can take now.. Today’s Hot Button Moves NOW video is: Put Options on the S&P Regional Banking ETF (KRE). This is a play on continued trouble in the regional banking sector. New York Community Bank has just been downgraded to junk by Moody’s, (due to its real estate loan portfolio) and has dropped by 60%, taking the regional bank sector along with it. Last Monday I bought puts for April 24 at 14 strike price for $2.09 each and the put price has gone through the February 7 date when I recorded this video. I don’t think this is the end of regional bank trouble so I’ll be holding on to these puts until the bad news subsides. This is a good way to take advantage of some of these dips in the market and hedge risks. For more options and volatility stocks, subscribe to JubakAM.com.

New York Community won’t be the last bank to get into trouble; adding Puts on next bank crisis

Nothing like a bank surprise to get Wall Street in a lather. On Wednesday, January 31,  New York Community Bancorp (NYCB) announced that it would cut its dividend and add to reserves against losses in its commercial lending portfolio. The stock fell 38% on Wednesday to hit a 23-year low on Thursday. The bad news wasn’t limited to U.S. banks either.Tokyo-based Aozora plunged more than 20% after warning of US commercial-property losses Frankfurt’s Deutsche Bank more than quadrupled its provisions against U.S real estate losses. I don’t see any reason to think that this is a one-day phenomenon. Or that the damage is just a minor problem in a few portfolios. Billionaire investor Barry Sternlicht warned this week that the office market is headed for more than $1 trillion in losses. “This is a huge issue that the market has to reckon with,” Harold Bordwin, a principal at Keen-Summit Capital Partners in New York, which specializes in renegotiating distressed properties, told Bloomberg. “Banks’ balance sheets aren’t accounting for the fact that there’s lots of real estate on there that’s not going to pay off at maturity.” On Monday then, I’m adding Put Options on the SPDR S&P Regional Banking ETF (KRE).

Selling my Schwab May 19 Puts on today’s 66% jump

Selling the KRE Put Options that I bought yesterday after today’s 70% jump

Yes, it’s a volatile market. Yesterday, May 1, the take from the Wall Street talking heads and JPMorgan Chase CEO Jamie Dimon was that the banking crisis (or at least this stage of it, to be fair to Dimon) was over. Today, May 2, the fear is that the crisis isn’t over. Regional bank stocks have plunged again with Western Alliance Bancorporation (WAL), for example, down 17.12% for the day as of 3 p.m. New York time. The regional bank ETF, the SPDR S&P Regional Banking ETF (KRE) is down 6.61%. That all means that the August 18 Put Options with a strike price of $41 that I bought yesterday at $2.55 are selling at 3 p.m. today at $4.72. Counting a slight gain from yesterday’s action after the buy, these Puts are up 85% in a day. I’m taking that gain today and selling this position out of my Volatility Portfolio

Special Report: My 5 Favorite Shorts for This Market–short #2 ahead of the Fed meeting (so 3 to come)

Special Report: My 5 Favorite Shorts for This Market–short #2 ahead of the Fed meeting (so 3 to come)

JPMorgan Chase’s (JPM) deal today, Monday, May 1, to acquire First Republic Bank (FRC) after the Federal Deposit Insurance Corporation (FDIC) regulators seized the bank certainly puts an end to the First Republic chapter of the banking crisis. But there are lots of chapters to go in this banking crisis. So my second short for this market is to buy Put Options on the SPDR S&P Regional Banking ETF (KRE).

Selling my Schwab May 19 Puts on today’s 66% jump

Special Report: My 5 Favorite Shorts for This Market–Shorts #1, #2 , #3 and #4 (so 1 more to come.)

I’m expecting modestly positive economic news in the next few days. Which will, in my opinion, create a low-risk opportunity to make big gains by going short this market in order to profit as stock prices fall. I’m looking to put the first of those shorts in place right now. With the rest to go into place in the days after the Federal Reserve meets on Wednesday, May 3. In this Special Report, I’ll explain this perhaps initially counter-intuitive call on short-term market direction and give you the details on five of my favorite shorts for profiting in this market. With the first short pick today

Please Watch My New YouTube Video: Quick Pick KBE Bank Stocks ETF

Please Watch My New YouTube Video: Quick Pick KBE Bank Stocks ETF

Today’s Quick Pick is SPDR S&P Bank ETF (NYSEARCA: KBE). I’m not suggesting buying this now: I’m suggesting you watch this and buy Put Options on this ETF when the time is right. The SPDR S&P ETF is approximately 80% regional banks. As you can imagine, it took a huge hit during the recent banking scare and would have been a great Put Option last week during the plunge in the sector. Options are a way to leverage the volatility of this market. The recent exit of my VIX Call Option resulted in a 100% gain in about a week. For KBE, I’d look at Put Options that climb in value as the price of the ETF sinks. At the time of recording, KBE was selling at about 37. I’m looking at the June 16 Put at a strike price o 38. At the moment, the Put is deeply underwater but I’ll continue to watch this rally to see when it’s worth it to jump in. At the moment, I suggest you watch this one: Don’t buy just yet but wait for the next shoe to fall in the banking crisis.

I’m selling my Nvidia Put options today on the stock’s two-day drop

I’m selling my Nvidia Put options today on the stock’s two-day drop

It’s hard making a profit on volatility trades in a market that’s as volatile as this one.

You’ve got to get the direction right, the timing, and the price. Miss one and get the other two and you can still wind up in the red. Which is where I find myself on the Nvidia Put Options (NVDA220819P00165000) I bought in my Volatility Portfolio on July 22 with a strike of $165 and an expiration date of August 19.

Trend turns against emerging markets–but it’s too late for my Puts: Selling my Put Options on EWZ,EWW and buying short emerging markets ETF

Trend turns against emerging markets–but it’s too late for my Puts: Selling my Put Options on EWZ,EWW and buying short emerging markets ETF

I think the trend has finally turned against emerging market stocks. All it took was the threat of a debt default by Russia. That shift is too late for the Brazil and Mexico Put Options I bought on January 24, which expire on Mach 18. But with a Russian debt default looming I’m replacing those Puts with an ETF that shorts the major emerging markets index.