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One of the top stories of New Year 2024 will be the presidential election.
And while there’s no way to tell who will lead the country after the votes are tallied, there is one certainty – volatility will soar with uncertainty ahead of time.
We saw the same thing before most presidential elections with the Volatility Index.
Before the 1992 election (Clinton v. Bush), the VIX ran from 12.47 to 20.51.
Before the 1996 election (Clinton v. Dole), the VIX ran from 14 to 22.
Before the 2000 election (Bush v. Gore), the VIX ran from 17 to 27.
Before the 2004 election (Bush v. Kerry), the VIX ran from 13 to 16.7.
Before the 2008 election (Obama v. McCain), the VIX ran from 20 to 90.
Before the 2012 election (Obama v. Romney), the VIX ran from 15.5 to 22.
Before the 2016 election (Trump v. Clinton), the VIX ran from 12 to 22.
Before the 2020 election (Trump v. Biden), the VIX ran from 20 to 40.
The Bull Spread can be used as an options investment strategy, which, as the name implies, may be used if you have a bullish bias for a stock. For example, let’s say that you’re interested in the Internet auction company eBay, which was trading at $150 a share. Buying 1,000 shares would require a staggering investment of $150,000. Instead, an investor might buy $150 at-the-money calls that expire in two months, and sell the $160 calls against them. You paid a premium of $11 a share for the $150 calls and collected $8.25 for the $160 calls, for a net cost of $2.75 a share. On a 10 lot (1,000 shares), that’s a net price of $2,750.
Now, instead of investing $150,000 outright to buy 1,000 shares of eBay, you have a $2,750 net investment. Here’s what happens under two possible scenarios:
BOUGHT: $150 calls for $11 premium SOLD: $160 calls for $8.25 premium
Elite Wall Street trader, Joe Duffy, is allowing a limited group of future-elite investors into his masterful daily trades at thousands of dollars less than what others charge.
When you join today for $1, the first month you'll receive:
Joe Duffy’s daily video newsletter with updates on what's happening in the markets that very day. Rather than watch talking heads for hours on cable, I'll get you up to speed in minutes.
You get weekend updates where I delve more into 'bigger picture' looks at the marketplace. Videos are illustrative, instructive, concise, and un-hedged. No double talk here.
The first profit opportunity is a stock purchase in FUSN, or Fusion Pharmaceuticals Inc. FUSN is a clinical-stage oncology company focused on developing radiopharmaceuticals as precision medicines.
The monthly chart shows that FUSN closed above the 10-month moving average line every month since October. If the stock price is above the moving average line, the trend is up.
The daily chart shows that FUSN has been trading inside the Upper Keltner Channel since October. That’s a very good sign of strength.
We recommend buying FUSN stock at the current price level.
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
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