The Latest Breaking News from Fed Funds

The combination of high implied volatility along with near record stock prices and stock valuations sets up ideally for selling calls against your stock.

Recent concerns about the unwinding of yen carry trades and its potential impact on financial markets have proven less disruptive than anticipated. Despite other countries raising interest rates to combat post-pandemic inflation, Japan has kept borrowing costs low to address its long-term economic stagnation. Although the Bank of Japan (BoJ)…

This week we have several news releases and other headlines to watch out for with the biggest potential mover being the FOMC release on Wednesday.

This week coming up is a week full of potentially market-moving news. There is Monday PMI data, Jobs data, and Non-Farm payrolls.

Lower IV and higher rates make a put purchases more attractive on a richly valued S&P 500.

One catalyst behind Wall Street's heighten volatility during the week was higher oil prices, growing Middle East tensions, and more robust economic data from China early in the week.

We had some wild trading last week with both CPI and PPI coming in hotter than expected. CPI came in slightly elevated, and the market rallied after some initial selling.

Earnings last week proved to be exciting with many companies posting better-than-expected results and their stocks reacting the next session.

The Fed Funds Rate’s rise from zero percent in March 2022 to 5.375% in October 2023 and quantitative tightening to reduce the central bank’s swollen balance sheet have put upward pressure on interest rates, causing bonds to fall. In early October, the U.S. long bond futures fell to the lowest…