It’s good to have certainty in all matters of life.
There’s no doubt that stock market investors like to have certainty, or at the very least they really don’t like uncertainty.
Personally, when it comes to investing and the opportunities present when pursuing the sale of options, I like that intersection between certainty and uncertainty, especially if there is a volley back and forth, but the range is well defined.
That’s because that volley gives rise to more generous option premiums even as the risk may not reflect what is being paid.
Within that context, I’ve liked 2016, other than the brief reaction served up in response to the December 2015 interest rate increase decision by the FOMC.
With 2016 coming to an end in just 2 months and after the past week of corporate earnings, it was still hard to know where the economy was standing and whether the FOMC might have better justification to finally implement another rate increase, as we’ve all been expecting for almost a year.
So far, this most recent earnings season hasn’t provided very much of a pattern of good news on top and bottom line beats and there hasn’t very much in the way of optimistic guidance being given.
What certainty was missing over the past week with regard to the direction of the economy gave way to some certainty on Friday, however.
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