MBB: Alert on ETF Inflows
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Analyst Views on MBB
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Trump Directs Representatives to Purchase $200 Billion in Mortgage Bonds; Impact on MBS ETFs.
- Trump's Initiative: President Donald Trump has initiated efforts to combat high mortgage rates.
- Goal of the Initiative: The aim is to make home buying more affordable for potential buyers.
Impact of Trump's Mortgage Bond Purchase Plan on Interest Rates
- Trump's Initiative: President Donald Trump has initiated efforts to combat high mortgage rates.
- Goal of the Initiative: The aim is to make home buying more affordable for potential buyers.
Top Income Opportunities for 2026: Dividend Stocks, Energy Pipelines, and More Recommended Choices
- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.
Concerns About Bonds Are Growing: Here's Why Selling Is a Misstep.
Market Volatility: Cracks in the credit markets and uncertainty regarding interest rates and the Federal Reserve have introduced volatility in the financial landscape.
Bonds' Appeal: Despite the volatility, bonds continue to be an attractive option for investors seeking income.
Portfolio Adjustments: Income-oriented investors are advised to make adjustments to their portfolios in preparation for the upcoming year.
Future Outlook: The current market conditions suggest a need for strategic planning and adaptability among investors.
iShares MBS ETF Sees Significant Withdrawal of Funds
MBB Share Price Analysis: MBB's share price is currently at $95.21, with a 52-week low of $90.28 and a high of $96.25, indicating a stable trading range.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, allowing investors to buy and sell units that can be created or destroyed based on demand, impacting the underlying assets.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows or outflows, which can affect the individual components held within those ETFs.
Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
Options Trading for iShares Trust - iShares MBS ETF (MBB) in the First Week of January 2026
Put Contract Overview: The $83.00 put contract has a bid of 5 cents, allowing investors to buy MBB shares at a lower cost basis of $82.95, which is a 13% discount from the current price of $95.44. There is a 97% chance the contract may expire worthless, offering a potential 0.06% return on cash commitment.
Call Contract Overview: The $96.00 call contract has a bid of 50 cents, enabling investors to sell MBB shares at this price while collecting a premium. If the stock is called away, the total return would be 1.11%, but there is a 64% chance the contract may expire worthless, allowing investors to keep both the shares and the premium.
Volatility Insights: The implied volatility for the put contract is 19%, while the call contract has an implied volatility of 6%. The actual trailing twelve-month volatility is calculated at 5%, based on the last 250 trading days.
YieldBoost Concept: The potential returns from both the put and call contracts are referred to as "YieldBoost," with the put offering a 0.39% annualized return if it expires worthless, and the call providing a 3.41% annualized return under similar conditions.
Trump Directs Representatives to Purchase $200 Billion in Mortgage Bonds; Impact on MBS ETFs.
- Trump's Initiative: President Donald Trump has initiated efforts to combat high mortgage rates.
- Goal of the Initiative: The aim is to make home buying more affordable for potential buyers.
Impact of Trump's Mortgage Bond Purchase Plan on Interest Rates
- Trump's Initiative: President Donald Trump has initiated efforts to combat high mortgage rates.
- Goal of the Initiative: The aim is to make home buying more affordable for potential buyers.
Top Income Opportunities for 2026: Dividend Stocks, Energy Pipelines, and More Recommended Choices
- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.
Concerns About Bonds Are Growing: Here's Why Selling Is a Misstep.
Market Volatility: Cracks in the credit markets and uncertainty regarding interest rates and the Federal Reserve have introduced volatility in the financial landscape.
Bonds' Appeal: Despite the volatility, bonds continue to be an attractive option for investors seeking income.
Portfolio Adjustments: Income-oriented investors are advised to make adjustments to their portfolios in preparation for the upcoming year.
Future Outlook: The current market conditions suggest a need for strategic planning and adaptability among investors.
iShares MBS ETF Sees Significant Withdrawal of Funds
MBB Share Price Analysis: MBB's share price is currently at $95.21, with a 52-week low of $90.28 and a high of $96.25, indicating a stable trading range.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, allowing investors to buy and sell units that can be created or destroyed based on demand, impacting the underlying assets.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows or outflows, which can affect the individual components held within those ETFs.
Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
Options Trading for iShares Trust - iShares MBS ETF (MBB) in the First Week of January 2026
Put Contract Overview: The $83.00 put contract has a bid of 5 cents, allowing investors to buy MBB shares at a lower cost basis of $82.95, which is a 13% discount from the current price of $95.44. There is a 97% chance the contract may expire worthless, offering a potential 0.06% return on cash commitment.
Call Contract Overview: The $96.00 call contract has a bid of 50 cents, enabling investors to sell MBB shares at this price while collecting a premium. If the stock is called away, the total return would be 1.11%, but there is a 64% chance the contract may expire worthless, allowing investors to keep both the shares and the premium.
Volatility Insights: The implied volatility for the put contract is 19%, while the call contract has an implied volatility of 6%. The actual trailing twelve-month volatility is calculated at 5%, based on the last 250 trading days.
YieldBoost Concept: The potential returns from both the put and call contracts are referred to as "YieldBoost," with the put offering a 0.39% annualized return if it expires worthless, and the call providing a 3.41% annualized return under similar conditions.
