Q4 Kicks Off: Market Moves, Shutdown Impact & Coal Sector Watch
Happy 4th quarter! Hard to believe it’s October already. The market has been moving higher since April, hitting new highs today—despite the government partially shutting down. That means furloughs for hundreds of thousands of workers, delays in employment data and added uncertainty.
Retail buyers seemed to drive some of today’s action, while pros leaned more defensive with short deltas and volatility plays. At the end of the day, the market will do what it does, and our job as traders is to adapt and trade what’s in front of us.
On the stock side, coal names have been catching attention. Trump’s plan to open 13.1 million acres for coal leases gave BTU a lift. I’ve held BTU for a while, writing covered calls against the position. Valuations are getting stretched, so I may let calls get assigned or roll them while waiting for a pullback.
Another name to watch: Core Natural Resources (CNR). They’ve faced delays after an equipment issue, but once that’s resolved—possibly this quarter—they could see momentum.
#MarketUpdate #CoalSector #OptionsEducation #Volatility
Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content posted by our authors is intended to be general education and / or general information in nature. We are NOT providing advice for any individual trader. No statement made by our authors or subscribers is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
