Derek Moore and Jay Pestrichelli, CEO of ZEGA Financial look at some what seem like crazy options trades in GameStop. Plus, examining Nvidia passing Apple as the second largest stock in the S&P 500, and can it pass Microsoft for #1? They also talk about whether it's a problem the top 4 stocks in the S&P 500 make up such a large percentage of the weighting and comparing it to the last time it was this high. Later they take some listener questions including whether the data shows cracks in the regional banks due to mortgage delinquencies, what happened in the unemployment report, and more.

Unemployment reaches 4%

Top 4 companies in the S&P 500 Index highest since the 1960's

Comparing the contribution to returns S&P 500 Index top 496 vs the top 3 and Nvidia

Residential mortgage delinquencies and effect on regional banks

FDIC quarterly data on the health of banks

Nvidia passes Apple for #2 as its market cap exceeds Apples but will Microsoft be next?

1964 vs 2024 top 4 company weighting in the S&P 500 Index

Now the top 4 companies today are a lot more diverse business

GameStop options trading

Looking at the 128 calls open interest, volume and probabilities next 2 weekly expirations

Volatility in the GameStop option chain

Mentioned in this Episode

Mortgage Bankers Association data on residential mortgage delinquencies https://usreop.com/mba-chart-of-the-week-seriously-delinquent-rates-by-loan-type-conventional-fha-va-may-17-2024/

Delinquency rates on commercial real estate loans from FRED https://fred.stlouisfed.org/series/DRCRELEXFACBS

CNBC piece on potential cracks in the banking system https://www.cnbc.com/2024/03/19/where-cracks-in-the-banking-sector-may-appear-without-more-ma.html

Crazy VIX Bets Due to Election? | Market Reversal | Home Ownership Affordability Today | Shiller PE

https://podcasts.apple.com/us/podcast/crazy-vix-bets-due-to-election-market-reversal-home/id1432836154?i=1000657610266

Derek Moore's book Broken Pie Chart https://amzn.to/3S8ADNT

Jay Pestrichelli's book Buy and Hedge https://amzn.to/3jQYgMt

Derek's new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Contact Derek [email protected]

www.zegafinancial.com