The Israel-Bombs-Iran Trade: This Trade That Worked After The Israel-Hamas War Started Could Work Again
Portfolio Pulse from David Pinsen
Israeli officials have indicated an imminent attack on Iran, which could spike volatility and oil prices while impacting stock prices, including United Airlines Holdings, Inc. (UAL). The article recalls a successful bullish trade on UAL following the Israel-Hamas war, suggesting a similar strategy could be effective if Israel attacks Iran. The CBOE VIX Volatility Index (VIX) is also mentioned, with its current level suggesting market participants are not yet reacting to the potential conflict.
April 18, 2024 | 1:50 pm
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POSITIVE IMPACT
The CBOE VIX Volatility Index (VIX) is currently not reflecting market concern over potential conflict between Israel and Iran, but an attack could lead to a spike in volatility.
The VIX's current level suggests market participants are not yet reacting to the potential Israel-Iran conflict. However, historical context implies that an actual attack could significantly increase volatility.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
United Airlines Holdings, Inc. (UAL) could experience a stock price drop if Israel attacks Iran, mirroring past impacts from Mideast tensions. A similar bullish trade strategy that was successful previously could be effective again.
UAL's stock previously suffered due to Mideast tensions, indicating a potential repeat impact if Israel attacks Iran. The article suggests a similar bullish trade could be profitable, based on past performance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90