Hedging With Options Examples | Soft Landing? | US Congress Trading Returns | Is Good News or Bad News Good?

Broken Pie Chart

Derek Moore and Jay Pestrichelli, CEO of ZEGA Financial, are back this week to discuss some hedging examples and how hedging is cheap right now. They even go through a few examples. Then they get into the sharp rise in container shipping costs before discussing the weaker PMI Services data. Later they note Bloomberg’s data showing articles mentioning “soft landing” are the highest since the 2000-2001 recession. A fun segment where they go through data from Unusual Whales showing the 2023 returns from members of congress and which members traded the most including options. Finally, they discuss whether so goes January goes the rest of the year in markets is a good indicator.

The cost of hedging with options is cheap right now.

Examples of hedging using the S&P 500 Index ETF SPY and Nvidia

Zero cost collars to hedge downside risk.

Is good news in markets or bad news in markets good news?

Container shipping costs spike due to the Red Sea and Suez Canal re-routing.

PMI Services data shows employment dipped below 50, which is contraction.

What is the PMI Services Survey?

“Soft Landing” shows up in Bloomberg articles the most since the 2000-2001 recession.

Which members of the US Congress beat the markets last year 2023?

Unusual Whales publishes report showing number of trades and performance of US Congress

Which congressman traded over 4000 times last year?

What does January performance say about the rest of the year’s performance in markets?

NY Fed global supply chain pressure index

Mentioned in this Episode:

Report from Unusual Whales showing 2023 members of congress trading returns https://unusualwhales.com/politics/article/congress-trading-report-2023

December ISM Services PMI report https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/december/

NY Federal Reserve Bank Global Supply Chain Pressure Index (GSCPI) https://www.newyorkfed.org/research/policy/gscpi#/interactive

2024 Predictions | Late Year Rally Bullish? | What if Investors Are Expecting Too Many Rate Cuts? https://podcasts.apple.com/us/podcast/2024-predictions-late-year-rally-bullish-what-if-investors/id1432836154?i=1000640245688

0 DTE Options to Blame for Selloff? | 2024 Targets for S&P 500 Index | Fed Dot Plots Always Wrong?https://podcasts.apple.com/us/podcast/0-dte-options-to-blame-for-selloff-2024-targets-for/id1432836154?i=1000639530301

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt

Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT

Contact Derek [e-mail]

www.zegafinancial.com