CBOE

What’s Your Income Plan?

For just the fourth time in 50 years, the S&P 500’s (NYSEARCA:IVV) dividend yield was briefly more versus 10-year U.S. Treasuries (ChicagoOptions:^TNX). It’s another testament to the difficult climate facing bond investors (NYSEARCA:BOND) who want to generate a respectable level of income. For good reason, more people are employing alternative income strategies like selling covered calls. The covered call technique (also …

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How to Beat the Low Yield Cycle

How would you like an 11% cut to your paycheck? That’s exactly what’s happened to income investors who own long-term Treasuries (ChicagoOptions:^TYX). At the beginning of the year, 30-year U.S. Treasury yields (NYSEARCA:TLT) were above 3.90% but have trended lower. That’s not what income investors who piled into long-term Treasuries were expecting. Their plan was to capture more …

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Is Stock Market Volatility Increasing?

Is stock market volatility rising or falling? For most of this year, stock market volatility has actually outperformed the stock market itself. But for whatever reason, it’s an unpopular narrative that’s been and continues to be ignored by the mainstream media. The chart below illustrates the relationship between stocks and volatility in 2014. You’ll notice how the S&P …

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Portfolio diversification

3 Steps to Beating the Retirement Income Shortage

One definition of insanity is doing the same thing over and over while expecting a different result. This is an apt description of retirement income investors who definitely want and need more dividends, but are going about it in the wrong way. For bond investors (NYSEARCA:BOND), yields on 10-Year U.S. Treasuries (ChicagoOptions:^TNX) have slid almost …

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Ready for the Next Surge in Volatility?

Is another surge in stock market fear and volatility ahead? Will you be ready when it happens? “Public psychology is the most important single factor in shaping security markets,” said Gerald Loeb. Loeb was right and that’s why we make it a regular habit at ETFguide to track movements and trading opportunities in the CBOE …

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Does the Sleeping Giant (VIX) Have More Upside?

Like a sleeping giant, stock market volatility can hibernate, but it never goes away. Right now, the giant is showing signs of awakening and whether the beast completely tramples the city is yet to be determined. Although the S&P 500 (^GSPC) hit all-time highs near 1,859 last week, a number of flashing indicators we’ve written …

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Will Dividend Yields Test ’99 Lows?

The past six years have been brutal for dividend and income investors. Zero percent interest rates have depressed bond yields (NYSEARCA:BOND) and with major stock indexes (^DJI) now trading at all-time highs, dividend yields relative to prices have fallen too. Last year, the number of S&P 500 (NYSEARCA:SPY) stocks paying a dividend touched a 17-year …

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