Skip to main content

Capitalizing on Healthcare

The hot topic in the political world has been health care. As the Obama administration struggles to showcase its health care plan, it's important to realize the implications on health care companies. In looking at United Health Care along with other big health insurance companies, they are clearly a major player. With volatility on the rise in this sector what this all means is that one can expect to profit from the unknowns of the health care debate.
http://www.cnbc.com/id/32465248/site/14081545

Last week, on the "Half-time" Report, I had a chance to discuss retail stocks such as target. I have seen a lot of bullish activity with call buying for September. If the market can not only test its highs but also set new ones, it would be a great sign for stocks such as Target. However, if we do not set new highs, this could put a lot of pressure on them. This is a classic example of why purchasing a call rather than owning the stock outright is better by limiting your exposure. I also discuss why I'm still bullish on financials such as Goldman Sachs and my analysis on Hewlett-Packard.
http://www.cnbc.com/id/32461621/site/14081545

Comments

Post a Comment

Popular posts from this blog

Is the KCJ Foreshadowing a 2008 Repeat?

The CBOE Correlation Index (KCJ) is close to the lowest level we have seen since it was first listed in 2007. The KCJ measures the implied movement of the S&P 500 components options, compared to the implied movement of the S&P 500 index options. Simply put, the higher the number, the more likely all stocks are going to move together. Conversely, a low number will be characterized by sector rotation, and flat markets; one sector moves higher, another moves lower.  (Source: Access Hollywood) Correlation, for lack of a better term, is correlated with volatility. Not surprisingly, 30-day S&P 500 historical volatility is near the low level of 6.5%. Currently at 33.5, KCJ is sitting close to rock bottom, lower than where it was in 2007, (but not lower than where Lindsay Lohan was in 2007).  So far this year, the market has been able to grind higher, characterized by leadership in FANG(Facebook Apple/Amazon, Netflix, Google) and sector rotation. A...
Post a Comment
Read more

Morning Update

Last night rumors that a Spanish bailout would occur in the near future strengthened, tightening Spanish and Italian bond yields to bunds. Even after the rumors that Spain would seek a bailout this weekend we denied risk-on sentiment remained. The Euro is now trading near the psychologically important 1.30 level and US equities are pointing towards a higher open. Yesterday the market also looked strong early on but gave back nearly all of its gains by the close. A strong close higher today will take some momentum back from the bears, while another reversal will only encourage more near-term selling. Yesterday we noticed unusual options activity in Best Buy. Someone sold 22,500 BBY Oct. 19 calls for $0.25 and bought 15,000 Nov. 19 calls for $0.90. This trade appears to be someone rolling their long Oct. calls forward into November. The Nov. calls will turn a profit if the stock is above 19.90 at expiration, which would require a 17% move from yesterday’s close. Best Buy has seen de...
Post a Comment
Read more