Algorithms, Interest Rates & 0 DTE Options
It’s another engaging and informative episode of Money Wise! The Money Wise guys are missing Jeff this week, but Kyle and Jow kick off the show with last week’s numbers from Wall Street. The Dow was up 0.1%, the S&P 500 was down 0.2%, and the NASDAQ was down 0.4%. Year-to-date the Dow is up 4.4%, the S&P 500 is up 15.9%, and the NASDAQ is up 31.0%. The Money Wise guys discuss the equally weighted S&P once again and the very unusual circumstances that continue to make it vastly different from the market cap weighted index. The Magnificent 7 stocks continue to produce, and the guys discuss the Thursday rally, then the Attack of the Fridays due in large part to a triple witching options expiration date, which produced lots of volume – up 85% over the daily average volume, in fact. The guys also share updates on the European Central Bank and whether its interest rate decision will extrapolate to the U.S. markets and to next week’s Fed decision. They also touch on 0 DTE options and the gambler’s mentality, which creates more volatility.
What Are 0 DTE Options?
The Money Wise guys introduce the concept of 0 DTE Options in this episode, which are a relatively new offering in options trading. 0 DTE Options are options contracts set to expire at the end of the trading day. They require a bit of a gambler’s mentality because this means the value of 0 DTE options is entirely determined by the underlying assets’ price movements on that day. With 0 DTE options, you can win big, or you can lose big. Learn more about why some investors are trading 0 DTE options here.
In the second hour, the Money Wise guys share The Best Investment Advice Ever. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.