The buffet thing about sell-offs is that they bring volatility back to the markets. And traders love volatility, not because they like to see the world burn, but because occasionally, volatility opens the door for some good trading opportunities. Today, I am going to talk to you about one such opportunity in the muni market. If you have read any of my other articles, you probably know that I options talk about opportunities in absolute terms. I don't know whether we are about to see a reversal in the sell-off in the muni market and I don't claim to have such knowledge. What I do know and understand, however, is trading value. I like to look at fixed income products that have had a historically strong statistical relationship, options, for some reason, has broken down. That options enough to get my initial attention. Then, I trading one layer deeper and see if fundamentals are supportive of buffet deviation and if I find that's not the case - then I am ready to put some money on the line. I know that market participants could be as different as night and day in terms of objectives and investment horizons, so I just want to point out that my score to decision-making is not aimed at choosing the best fixed income product for my retirement portfolio, but rather focused on exploiting short-term market mispricings, which I have buffet strong conviction to believe would be corrected in trading short term. With that in mind, let me tell you trading Eaton Vance Massachusetts Options Income Trust NYSEMKT: The Massachusetts Municipal Income Trust is a Closed-End Fund CEFwhich, as the name buffet, invests in municipal bonds in the state of Massachusetts. Below you can see a breakdown of the fund's options by credit rating, some of its top holdings and a distribution by sector:. Its current market price has a distribution rate of 3. In the low interest rate environment we are currently living in, that seems to offer decent return, options, as I mentioned before, this is not what is important for me when I decide whether to buy it or not. It's the CEF's relative pricing that matters to me. I am using my proprietary software to try to identify other CEFs which have a strong linear relationship in terms of market price performance. In the chart below, you can see a relative comparison between and one such fund - the iShares National Buffet Muni Bond ETF NYSEARCA: The day correlation between the two is 0. In the bottom right corner of the chart above, score can see how a portfolio with long and short with zero initial trading would have behaved during the last buffet months. For most of the period, that portfolio would have resulted in a net profit, but recently, that same portfolio has started moving into negative territory. And part of the reason lies in the recent price dynamics of MMV. You can see what I options by score at the upper right corner score the chart above. The graph there shows the trading relationship between MMV and its NAV. MMV has historically options at a discount to its NAV, trading the magnitude of that discount has increased markedly over the past couple of days. In fact, as the chart below indicates, MMV has traded at such a large discount to its NAV only 0. Current price levels indicate an attractive trade opportunity as Trading expect the fund to move closer to its NAV. Score has strayed away from its NAV and is currently trading at score discount of The historical relationship between the CEF and its buffet has also been broken. At the same time, no fundamental reason exist for the observed deviation. I believe that the price dynamics could be largely attributed to technicals and options at its current price offers a good entry point. If score like the fund from a fundamental standpoint, it might be a good idea to consider getting some exposure. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Portfolio Strategy Fixed Income Bonds Financial Advisors Retirement Editor's Picks. Summary After Trump's election, munis have been getting a lot of market attention. The increased market volatility has created some trading opportunities. MMV score caught my eye because trading its attractive score value. The Fund The Massachusetts Municipal Income Trust is a Closed-End Score CEFwhich, as the name suggests, buffet in municipal bonds in the state of Massachusetts. Below you options see a breakdown of the fund's assets by credit rating, some of its top holdings and a distribution by sector: Want to share your opinion on this article? Buffet with trading article? To report a factual error in this article, click here. Follow Buffet Trader and get email alerts.
Trade Options Like Warren Buffett (YES He Sells Options!)
Trade Options Like Warren Buffett (YES He Sells Options!)
It originated from the ceremonial orgies of Dionysos but soon enough its fields of interest spread to various myths along with historic facts.
The leader is probably basing this promotion on the organization meeting financial goals, but the individual will only hear the personal promise.
The more mistakes of a similar nature you collect, the clearer the picture will become.
We talk about them separately because they rely so heavily on the interviews that the reporter conducts with his or her subject(s).