To reinforce the warning at the end, the put/call ratio on HYG is currently 12 (!) Lots of money is betting on it falling in price. The Fed is also not buying

To reinforce the warning at the end, the put/call ratio on HYG is currently 12 (!) Lots of money is betting on it falling in price. The Fed is also not buying non-IG bonds (yet) so nobody will be supporting HYG/JNK in the way LQD will be. If they start buying those, HYG will soar. An oil price spike and recovery would help HYG too. To be fair, I did make money on weekly HYG calls today, but that was a hedge ;) 4/9 76C from .50 to 1.18