🐺 Volatility is Back

Before we dive in, here’s what stood out today: volatility is back, the first big bank earnings are in, and speculative names are running hot again.

Volatility is Back

The $VIX ( ▼ 6.68% )  moved above 20 for the second time since May, signaling that intraday swings are officially back. Monday saw a clean move higher, but Tuesday reversed course… $SPY ( ▼ 0.12% )  opened down 1.4% and $QQQ ( ▼ 0.67% )  was down 1.88%, both attempting an recovery before fading later in the day.

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Seeking Monthly Income During Volatility?

The weakness started after Trump posted about ending the “cooking oil trade” with China, reigniting trade tension fears. The message erased part of the day’s gains and pushed indices back into the red.

Perhaps it’s time to consider covered call ETFs, a market segment that’s become increasingly popular with those who desire steady income in their portfolios.

NEOS ETFs seek monthly income, tax efficiency, and the potential for upside capture in rising markets for their investors. NEOS has set out to enhance investment portfolios with the next evolution of options-based income solutions.

NEOS ETFs serve as a compelling income-focused alternative or complement to many of the core holdings already in investor portfolios. Investment categories include the S&P 500, Nasdaq-100, Russell 2000, Bitcoin, Bonds, Treasuries, Real Estate, and more. Their diversified ETF suite includes:

SPYI – S&P 500 High Income ETF

QQQI – Nasdaq-100 High Income ETF

IWMI – Russell 2000 High Income ETF

BTCI – Bitcoin High Income ETF

CSHI – Enhanced Income 1-3 Month T-Bill ETF

BNDI – Enhanced Income Aggregate Bond ETF

IYRI – Real Estate High Income ETF

If volatile market conditions leave you desiring passive income in your portfolio, consider learning more about NEOS ETFs at neosfunds.com.

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JPMorgan Earnings: Strong results, Weak Reaction

$JPM ( ▼ 1.91% ) kicked off earnings season with a headline beat: EPS $5.07 vs. $4.84 est. and revenue $46.4B vs. $45.6B est. Trading and investment banking were solid, and credit provisions came in lighter than expected.

Still, the stock fell roughly 2% on the day, a “sell-the-news” reaction that reflects just how defensive sentiment has become. CEO Jamie Dimon warned that inflation and geopolitical risks remain elevated… and in this environment, even strong results can’t dodge volatility.

Meme Stock 2.0: The Speculative Wave

The speculative wave is back in full force. $OKLO ( ▲ 1.83% ), $IREN ( ▲ 8.45% ) , and $APLD ( ▲ 2.34% ) continue to surge, driven by AI, energy, and datacenter hype. Multiples are expanding fast, with liquidity, not fundamentals, doing the heavy lifting.

It’s exciting for momentum traders but risky territory for long-term investors. As always, it’s better to watch the heat than get burned chasing it.

Thanks for reading! Check out more content like this over on my X account.

Have a profitable rest of the week!

Disclaimer:

Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus containing this and other important information, please call (866)498-5677 or view/download a prospectus here:  SPYI | QQQI | | CSHI | BNDI | IWMI | BTCI | IYRI. Please read the prospectus carefully before you invest.An investment in NEOS ETFs involves risk, including possible loss of principal. The equity securities purchased by the Funds may involve large price swings and potential for loss.

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. The funds are new with a limited operating history.

Investments in smaller companies typically exhibit higher volatility. Investors in NEOS ETFs should be willing to accept a high degree of volatility in the price of each fund’s shares and the possibility of significant losses.

Bitcoin Risk: Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty. The further development of the Bitcoin network and the acceptance and use of bitcoin are subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development of the Bitcoin network or the acceptance of bitcoin may adversely affect the price of bitcoin. Bitcoin is subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact the digital asset trading venues on which bitcoin trades. The Bitcoin blockchain may contain flaws that can be exploited by hackers. A significant portion of bitcoin is held by a small number of holders sometimes referred to as “whales.” Transactions of these holders may influence the price of bitcoin. NEOS ETFs are distributed by Foreside Fund Services, LLC.