Just weeks ago, we highlighted how a reasonably probable options trade on the S&P 500 ETF (SPY) could have yielded a staggering 3,000% return - read You Missed A 3,000% Profit Opportunity On The S&P 500 - Be Prepared For The Next One. That opportunity has passed, but the market's recent surge and looming uncertainties suggest that another significant move may be on the horizon.
Tony Zhang of @OptionsPlay sees a “mispricing of the downside” for markets and offers an example options trade on the S&P 500 ETF (SPY). He is most concerned about the bond market and is keeping a close eye on yields.
The S&P 500 is experiencing a challenging year due to aggressive U.S. tariff policies and occasional ups and downs in Big Tech stocks.However, after slipping into a correction territory in April due to a heightened trade war saga, the S&P 500 has finally staged a remarkable comeback in May.
The SPDR S&P 500 ETF is a core holding for long-term US stock investing, focusing on large-cap stocks and offering broad market exposure. SPY has a low expense ratio of 9.45 bps, a yield of 1.3%, and holds roughly 500 large-cap stocks, making it a cost-effective investment. Concentration risks include heavy exposure to Technology stocks and the top ten holdings, comprising about 34% of the portfolio.
The markets are feeling the pressure today after Fed Chairman Jerome Powell commented on interest rates.
U.S. stock markets have rebounded from trade policy turmoil, driven by retail investor resilience and a thaw in U.S.-China trade tensions. Despite my initial bullish predictions for 2025, current S&P 500 earnings estimates have declined, and I expect economic challenges ahead.
The markets came out of the gate higher but are off their best levels of the morning.
The S&P 500 index is now celebrating a recovery of 20% since the lows it had made during so-called “Liberation Day,” when President Trump rolled out the first round of trade tariffs with virtually every major trading partner dealing with the United States, creating major volatility and uncertainty across the board. Despite a recent rally building up from a successful agreement between the United States and China, some out there think this will be short-lived.
The market's recent volatility, driven by tariff concerns, presents a buying opportunity for SPY, with expected double-digit gains by 2025. Despite a 19% drop, the S&P 500's improved valuation and continued earnings growth make it a strong long-term investment. Historical recovery patterns suggest a V-shape recovery, with potential catalysts like Fed rate cuts, tariff deals, and strong earnings from mega tech companies.
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
Markets are mixed while Corporate America is traversing its way through the tariffs.
Wall Street surged last week on cues of trade de-escalation and a revival in tech stocks. But uncertainty still persists.