What an active March we have had here at Fishback Management! We started the month off with talking about the disposition effect which created quite the chatter in our ODDS Community. To read more about the disposition effect, go to https://www.etf.com/sections/index-investor-corner/swedroe-understanding-disposition-effect?nopaging=1 . Here you will find an article that Don shared at the beginning of the month that will shed some insight to how people get emotionally involved in trading.
Boeing (NYSE: $BA) was also a hot topic for us this month. With the grounding of their 737 Max, we have seen all kinds of creative trades constructed to take advantage of potential moves in Boeing using options instead of trading the underlying asset. We couldn’t agree more that this incident is the perfect way to leverage options due to the sudden and unknown nature regarding the future of the company. This was discussed thoroughly in our ODDS Community forum and a few participants figured out how to profit from the uncertainty of $BA stock.
Finally, today, we have seen the European markets get hammered as Germany had a bond yield go negative. This created a discussion about negative rates and how that works. To read more about this, go to https://www.reuters.com/article/us-global-markets/german-10-year-bond-yields-crash-below-zero-as-growth-fears-roil-markets-idUSKCN1R304I