Latest news with #McElligott
Yahoo
7 days ago
- Business
- Yahoo
After the TACO trade, here comes the ‘Trump collar.' What that means for stocks.
Early action on Monday shows Wall Street starting the week on the back foot, as trade-war concerns once again dominate the narrative. This may come as no surprise to Charlie McElligott, strategist at Nomura. What on Earth is going on with the American consumer? My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money I help my elderly mother every day and drive her to appointments. Can I recoup my costs from her estate? My father-in-law has dementia and is moving in with us. Can we invoice him for a caregiver? 'I'm not wildly wealthy, but I've done well': I'm 79 and have $3 million in assets. Should I set up 529 plans for my grandkids? Known for his colorful stream-of-consciousness notes examining derivatives, McElligott taps the ever-expanding lexicon of Trump trades to tout the 'Trump collar' as a way to explain the latest market moves. A collar, in option markets, is a strategy used to protect against significant losses, but which also limits potential profits. Collars tend to be used when a trader is generally optimistic about an asset owned for the long term, but there's concern about short-term volatility in the market. The trade is struck by buying an out-of-the money put option (the right to sell a security at a particular strike price within a given time period) and selling an out-of-the-money call option (the right to buy a security at a particular strike price within the same time period). 'Out of the money' refers to when a call-option strike price is above the current asset price and when a put-option strike price is below the asset price. McElligott argues that investors should think in terms of a collar when they consider a market that is kept in a range by U.S. President Donald Trump's tariff rhetoric — a market that seems to want to trundle higher, but which is regularly knocked back by Truth Social posts. 'You all know 'Art of the Deal' Trump … and over the past month+, the 'TACO'-kind … but what it all adds up to now is the de facto 'Trump Collar,' as the market retrains the reaction function in the 'Human VVIX' era,' says McElligott in an email missive sent Friday. Readers will by now be familiar with the TACO trade. The VVIX is a gauge that measures the volatility of the Cboe volatility index 'VIX' VIX, and McElligott is clearly laying the cause of market vacillations at the feet of Trump. He presents the table below to illustrate just how much Trump — the 'Status Quo Disruptor in Chief,' as he calls the Republican president — has been impacting markets. McElligott says that, late last week, when the S&P 500 SPX sat only a few percentage points shy of February's record high, the stock market was in the upper band of its range trade because investors have come to terms with what the analyst calls Trump-collar 'reflexivity.' By this he means that traders are aware that a falling market, in response to harsh Trump trade talk, will subsequently be lifted by Trump's delivery of more soothing trade comments. But 'Trump then becomes re-emboldened' and talks tough again, causing investors to sell call options to hedge against declines. We see this happening when the S&P 500 moves back toward the 6,000 level, according to McElligott. Then in response to the 'Human VVIX' downside scenario — as Trump again talks tough — the volatility of volatility re-expands, and U.S. dollar assets trade lower again in unstable fashion. That once again 'restrikes the Trump Put, as his 'pain threshold' is hit in financial markets' and they rally back 'off the precipice,' he said. 'Rinse, repeat,' says McElligott. He says that, if a trader had bought S&P 500 futures five days after Trump delivered some of his fiery tariff rhetoric — the market had fallen in response — and sold S&P 500 futures five days after Trump pulled back from that earlier position — the market had then rallied — the trade would have resulted in a 12% return. U.S. stock-indices SPX DJIA COMP are lower at the opening bell as benchmark Treasury yields BX:TMUBMUSD10Y rise. The dollar index DXY is lower, and gold GC00 is trading around $3.355 an ounce. Oil prices CL.1 are sharply higher despite OPEC+ announcing another sharp production hike. Key asset performance Last 5d 1m YTD 1y S&P 500 5911.69 1.88% 3.96% 0.51% 12.02% Nasdaq Composite 19,113.77 2.01% 6.32% -1.02% 14.21% 10-year Treasury 4.447 -7.10 9.80 -12.90 5.20 Gold 3375 0.52% 0.94% 27.87% 42.33% Oil 62.84 2.15% 9.80% -12.56% -15.09% Data: MarketWatch. Treasury yields change expressed in basis points Need to Know starts early and is updated until the opening bell, but to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. U.S. economic data due on Monday include the S&P final U.S. manufacturing PMI for May at 9:45 a.m. Eastern, followed at 10 a.m. by the ISM manufacturing survey for May. China has vowed to fight back over what it called 'discriminatory restrictive measures' by the U.S. that it said are endangering an agreement hammered out between the two countries last month. Shares of Cleveland-Cliffs CLF, Nucor NUE and Steel Dynamics STLD are surging after Donald Trump said he was slapping 50% tariffs on steel imports. The Federal Reserve will likely be able to lower interest rates this year, and recent data support this outlook, Fed governor Christopher Waller said. Fed Chair Jerome Powell will make some opening remarks at 1 p.m. Ahead of him, Dallas Fed President Lorie Logan speaks at 10:15 a.m., and Chicago Fed President Austan Goolsbee speaks at 12:45 p.m. The law firms that appeased Trump — and angered their clients. 'You are going to panic,' Jamie Dimon tells regulators about what will happen when the bond market cracks. Why are bond investors contrarian while equity investors extrapolate? There's a lot of chatter about how rising Treasury yields may be damping demand for stocks. But as Goldman Sachs shows, it's not so much the height of yields that's the problem, but more the speed at which they rise. Read: Here's why Goldman still sees 10% upside to the S&P 500, even with bond yields rising Here were the most active stock-market ticker symbols on MarketWatch as of 6 a.m. Eastern. Ticker Security name NVDA Nvidia TSLA Tesla GME GameStop PLTR Palantir Technologies BMGL Basel Medical AAPL Apple MLGO MicroAlgo AMC AMC Entertainment TSM Taiwan Semiconductor Manufacturing NIO NIO A big legal splash at Walt Disney World. Millions of honeybees abuzz after truck overturns in Washington state. Anthropic's new AI model didn't just 'blackmail' researchers in tests — it tried to leak information to news outlets. For more market updates plus actionable trade ideas for stocks, options and crypto, .'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? 'You never know what might happen': How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? 10 nuclear stocks expected to rise as much as 94% after Meta-Constellation deal Strategists forecast a sizzling summer for small-cap stocks 'I am getting very frustrated': My mother's adviser has not returned my calls. He manages $1 million. Is this normal? Sign in to access your portfolio
Time of India
7 days ago
- Business
- Time of India
First TACO, now Trump Collar: Shocking new nickname of the President making waves in U.S — who coined it and why it matters
A new nickname for Donald Trump is trending on Wall Street, it's called the 'Trump Collar'. This term comes after another nickname 'TACO', short for 'Trump Always Chickens Out', became popular earlier. The person who came up with 'Trump Collar' is Charlie McElligott , a strategist at Nomura, as per reports. McElligott is known for using colorful, creative language in his financial analysis. A 'collar' in finance is a strategy that protects from big losses but also limits gains. Traders usually use this strategy when they believe something will do well in the long term but are worried about short-term risks, as per MarketWatch report. McElligott says this idea fits with how the stock market reacts to Trump; it wants to go up, but gets shaken by Trump's random social media posts, especially on Truth Social. Basically, the 'Trump Collar' describes how Trump's actions and posts make the market nervous, even if the overall economy looks okay. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0.00% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dermatologista recomenda: simples truque elimina o fungo facilmente Acabe com o Fungo Undo In an email, McElligott said, 'You all know 'Art of the Deal' Trump and over the past month plus, the 'TACO'-kind but what it all adds up to now is the de facto ' Trump Collar '', as per MarketWatch report. He also called Trump the 'Status Quo Disruptor in Chief', meaning he's really good at shaking things up and making Wall Street unstable. The phrase 'Human VVIX era' McElligott used refers to how Trump's unpredictability is like a person causing market volatility , as stated in the reports. Live Events FAQs Q1. What is the "Trump Collar"? It's a new nickname showing how Trump's actions make markets shaky. Q2. Who made up the term "Trump Collar"? Charlie McElligott, a strategist at Nomura, coined it.
Yahoo
03-06-2025
- Business
- Yahoo
Tired of ‘TACO?' Here comes the ‘Trump collar'
With Wall Street starting a new week on its back foot, one financial analyst, known for his colorful language, has come up with a new way to describe what's ailing investors. Just when you were tired of 'TACO,' or 'Trump Always Chickens Out,' say hello to the 'Trump Collar.' That comes courtesy of Charlie McElligott, a strategist at Nomura, according to MarketWatch. For those of you who aren't fluent in WallStreetese, a collar, in the option markets, is a strategy that protects against big losses, but also limits profits, according to MarketWatch. Traders tend to use them when they're optimistic about an asset over the long haul, but are sweating short-term volatility in the market, according to MarketWatch. According to MarketWatch, McElligott has argued that investors should think about collars when they think about a market that's been smacked around by Trump's tariff rhetoric. In other words, one that wants to move higher, but gets knocked back by incendiary Truth Social posts, MarketWatch reported. 'You all know 'Art of the Deal' Trump … and over the past month+, the 'TACO'-kind … but what it all adds up to now is the de facto 'Trump Collar,' as the market retrains the reaction function in the 'Human VVIX' era,' McElligott said in an email last week. McElligott has referred to Trump as the 'Status Quo Disruptor in Chief' because of his ability to send Wall Street tumbling, MarketWatch reported. Worcester activist critical of city manager faces one-year city hall ban Residential retrofitting program turns on high-speed internet for Bay Meadow Apts. in Springfield A Pennsylvania Democrat and Republican come to Boston. Bipartisanship breaks out GOP Mass. governor hopeful Brian Shortsleeve touts 'record' $416K fundraising haul Bill Clinton raises alarm over Donald Trump: 'We've never seen anything like this before' Read the original article on MassLive. Sign in to access your portfolio
ABC News
05-05-2025
- Health
- ABC News
Man runs 303km in three days in the outback to raise money for mental health
A man has run 303 kilometres over three days across some of Australia's harshest terrain to help men struggling with mental health in the bush. Warning: Readers are advised that this story contains references to suicide. After months of preparation, Travis McElligott, 32, ran from Mount Isa to Gregory over the Labour Day long weekend in Queensland, with a team of passionate locals helping him raise more than $25,000. The gruelling outback conditions — mouthfuls of flies, dust in the lungs, and a few run-ins with nature — were never going to stop Mr McElligott from getting his message out. Travis McElligott at the finish line, ready to rest and celebrate. ( ABC North West Qld: Maddie Nixon ) "We've lost some people close to us and I see a lot of people that that have lost friends," said Mr McElligott, who lives in Mount Isa. If you or anyone you know needs help: Aboriginal & Torres Strait Islander crisis support line "I decided to get off my arse and run 300 kilometres to raise awareness and a bit of money for mental health." Mr McElligott was joined by others on and off over the long three days. ( ABC North West Qld: Maddie Nixon ) 'Something has got to change' It's a sentiment shared by others in outback Queensland including Tony "Tonka" Toholke, the founder of Mount Isa's International Men's Day. He became an advocate in the community after his own battle with mental health. Mr McElligott and Tony Toholke took time for a selfie before the run began. ( ABC North West Qld: Maddie Nixon ) And although mental health awareness is improving, he's concerned it is still too hard for people to get help and too many people are dying as a result. "I was talking to a guy here the other day, he said, 'I would like to see a psychiatrist or psychologist' — it's a two-month wait and it's a $250 fee … something's got to change." Mr McElligott and his support team the morning before they set off. ( ABC North West Qld: Maddie Nixon ) Lifeline Australia statistics show people in rural areas are two times more likely to take their life by suicide, and 75 per cent of the people who do are male. "I know about 30 blokes in my circle that struggle," Mr Toholke said. "I text them to check in on them, and every second week they come to my house, and we talk sh*t." Until professional services become easier to access, Mr Toholke said remote and regional locations like Mount Isa had to come up with "small, community-based solutions". Several support vehicles flanked Mr McElligott, ready to deliver food and water. ( ABC North West Qld: Maddie Nixon ) He said the funds Mr McElligott's efforts had raised would go toward helping men access support services. "We'll give them a bit of money to go to programs and get some help, because obviously, help is great to have, but it's also very expensive," Mr Toholke said. Getting the message out Mr McElligott back up his three-day run with the legendary Gregory River Canoe Marathon the following day. The gruelling feat took a toll. "I didn't think it was going to be that hard, but the end of day two was probably the hardest thing I've ever had to do in my life," he said. Mr McElligott and his support crew camped overnight on the side of the road leading to Gregory. ( Supplied: Ashley King ) Mr McElligott said it was worth it if it saved lives and there was "no chance" he wouldn't finish. "My support crew, they were like, 'If you wanna tap out, we'll drag you across the line,'" he said. "I couldn't have done it without the team." The beers, cheers and hugs were flowing when Mr McElligott finished his run. ( ABC North West Qld: Maddie Nixon ) His outback endeavour was not the first time he had strapped on sneakers for mental health. Last year he ran for 24 hours up and down Telstra Hill on Mount Isa's outskirts. Mr McElligott, his wife Rachael and their newborn Laney Rae, after the race. ( ABC North West Qld: Maddie Nixon ) This year he decided to go bigger, hoping to get his message out and save lives. "By doing this run, if we can help somebody out, we've done our job," he said. "If you're thinking of somebody that might be struggling, pick up the phone, have a chat with them, because you could actually save their life." ABC North West Qld — local news in your inbox Get our local newsletter, delivered free each Tuesday Your information is being handled in accordance with the Email address Subscribe
