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The market’s like a paddling duck—calm on top, chaos underneath, says RBC’s Amy Wu Silverman
CNBC Television· 2025-10-07 13:17
All right. So, just a lot going on in the world, Amy. Just a lot going on.Government shutdown. We mentioned tariffs and everything else. But the VIX has really been kind of muted.It's been muted like well below the highs of earlier this year when you first got those tariff announcements. So, I want to ask you when in the options market, isn't this the play to own the VIX. Whether you it's calls or puts or inverse.I mean, isn't that the place to be. Because what are the chance the volatility stays the same g ...
Nasdaq Covered Call ETFs for Growth & Income
Zacks Investment Research· 2025-07-29 21:13
ETF Market Trends and Popularity - Option income ETFs have gained significant popularity this year due to investors' demand for high income, leading to a surge in launches [2] - These ETFs aim to provide high yields and lower portfolio volatility, but it's important to remember that there is no free lunch in investing [2] - Option income ETFs tend to perform best in sideways markets, offering some protection during stock falls but underperforming in strong bull runs [3] - Investors are increasingly seeking exposure to high-growth technology stocks through NASDAQ 100-based ETFs, leading to increased popularity compared to S&P 500-based ETFs [5] ETF Strategies and Holdings - JPMORGAN's JEPIQ ETF mirrors the NASDAQ 100 index and uses a data science-driven approach to select stocks, aiming for favorable risk and reward characteristics, and generates income by writing call options using equity-linked notes (ELNs) [7] - NEOS's QQQI ETF also provides exposure to NASDAQ 100 stocks and uses call options, focusing on tax-loss harvesting opportunities [8][10] - AMPLIFY's QDVO ETF focuses on large-cap dividend growth stocks and writes covered calls on individual stocks, with a more concentrated portfolio [12][13] ETF Performance Comparison - Since its inception in August of last year, AMPLIFY's QDVO ETF has returned approximately 25%, outperforming the NASDAQ 100 index (up about 20%), NEOS's product (up about 19%), the S&P 500 index (up about 16%), JEPQ (up about 15%), while GLOBAL X product significantly underperformed (up about 6%) [14][15][16] - Over a longer term (approximately 3 years), option income products tend to underperform broad indexes; during this period, the NASDAQ 100 index surged about 76%, JEPQ delivered performance similar to the S&P 500 index (both up about 55%), while JEPPY was up about 29% [17] ETF Expense Ratios and Yields - JPMORGAN's JEPIQ ETF has an expense ratio of 35 basis points and a 30-day SEC yield of over 11% [7][8] - NEOS's QQQI ETF is the most expensive of the three highlighted, with an expense ratio of 68 basis points [9] - AMPLIFY's QDVO ETF charges 55 basis points [12] ETF Asset Under Management (AUM) - JPMORGAN's JEPIQ ETF has $28 billion in assets, with $8 billion inflows this year [5] - NEOS's QQQI ETF has $34 billion in assets, with $26 billion inflows this year [8] - AMPLIFY's QDVO ETF has $143 million in assets, with $125 million inflows this year [12]
Outside Days Offer Intriguing Options Opportunity
Schaeffers Investment Research· 2025-05-14 12:00
Group 1 - The article analyzes outside days in the S&P 500 Index and individual stocks, identifying potential trading setups based on these patterns [1][2] - A total of 15,300 outside days were recorded since the beginning of 2024, with stocks showing an average return of 0.80% over the next month after outside days, compared to 0.65% for non-outside days [2][3] - The analysis indicates that stocks closing below the prior day's low after an outside day have the best average return of 0.86%, while those closing above the prior day's high have the lowest average return of 0.73% [3][4] Group 2 - Outside days are considered potential reversal points, with the analysis further broken down by stocks near 52-week highs or lows [6] - Stocks near a 52-week high that experienced a bearish outside day had an average return of 0.89%, with only 44% beating the S&P 500, suggesting a headwind for these stocks [7] - Conversely, stocks near a 52-week low that closed above the prior day's high after a bullish outside day averaged a return of 2.84%, with 67% of returns positive and 56% beating the S&P 500, indicating a strong reversal signal [8][10] Group 3 - The performance of call options on stocks near a 52-week low after bullish outside days yielded an average return of 33% per trade, with one-third of trades doubling [11][12] - Recent signals for potential turnarounds include PepsiCo Inc, Campbell's, and Biogen Inc, suggesting these stocks may be ripe for investment based on the analysis [12]
Here's Why Call Option Traders Love Dutch Bros Stock
MarketBeat· 2025-05-12 16:11
Core Viewpoint - Dutch Bros Inc. has seen a significant increase in call options activity, indicating strong bullish sentiment among traders, with a notable 94.6% rise in call options volume, suggesting high conviction in the stock's potential for price appreciation [4][3][11] Group 1: Stock Performance - Dutch Bros stock has rallied by over 21.1% year-to-date and 76.2% over the past 12 months, outperforming major competitors like Starbucks by 25% in the last quarter [5][6][7] - The current stock price is $68.50, with a 52-week range between $26.96 and $86.88, and a price target of $75.21, indicating a potential upside of 10.24% [2][8] Group 2: Financial Metrics - Dutch Bros reports a gross profit margin of 26.3%, which is higher than Starbucks' 25%, highlighting its competitive edge despite being a smaller company with a market capitalization of $10.4 billion compared to Starbucks' $91.2 billion [8][9] - Deutsche Bank has increased its holdings in Dutch Bros by 12.2%, raising its net position to $37.8 million, supporting a bullish outlook for the stock [11] Group 3: Market Sentiment - Analysts have reiterated an Overweight rating for Dutch Bros, with a fair value estimate of $82 per share, suggesting a potential rally of up to 30% from current levels [12][13] - The stock's short interest has decreased by 9.8%, indicating a shift in market sentiment as bearish positions are being unwound in light of stronger financials and positive momentum [14]