debt ceiling

The President will be asking Congress to raise the debt ceiling again.

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Normally, the strongest  time of year for the market is the 4th quarter.  It may be different this year.   Note this email response from the senior Senator from Utah. “Thank you for contacting me to express your thoughts and concerns about recent debate on our nation’s debt and budget negotiations.  I appreciate your timely input on this very important topic. As you may have heard through the news media, a compromise proposal was negotiated over the weekend of July 30th.  The compromise proposal passed the House on August 1, 2011 by a vote of 269-161, the Senate on August … Read more

Debt Ceiling Debacle Sets up Well for a Strangle

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A strangle is an options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. There will probably be no deal tonight or Friday on the debt ceiling negotiations.  If we don’t see a bill to extend the … Read more