After a brutal year like 2022 in the market, a few of you are wondering how I can do better? Is there a way to not repeat the drawdowns that happened in the S&P, or even worse some of the high-flying pandemic-related names like Tesla, Amazon, and Coinbase, that saw […]

The market keeps trying to price in this idea that the Fed will raise a couple more .25 moves and then be done. After the rate pause, the assumption that is then being priced in is that by the end of 2023, the Fed will start to cut rates again […]

The following are the stocks that several of the instructors are looking at for 2023. Much of this write-up is a transcript from the live broadcast recording on Friday, Dec 30, 2022. There have been slight grammatical changes to make the wording make sense from the recording of the live […]

Implied Volatility can be simply thought of as the “expensiveness” of options. There’s a bunch of math – but let’s keep this simple. I often use the analogy of insurance, which is actually more than an analogy; insurance is technically a put option. Let’s use homeowners insurance as an example. […]

In the last few weeks of March 2019, the headlines in financial media were consumed by the news of the inverted yield curve. What does an inverted yield curve mean? The U.S. Treasury issues bonds for different periods of time, e.g., 3 month, 6 month, 1 year, 10 year, etc.. […]

Let’s suppose for a moment that Elon Musk is serious about a Tesla buyout at $420, how could you trade it? 1) Long Stock The first and most obvious approach for most traders is to buy shares. As of this writing, the stock is trading at $373.70. That gives you […]

As another earnings season begins, options traders are presented with an opportunity to structure trades that aim to take advantage of the potentially explosive moves in stock prices that can occur with the release of earnings information and forward guidance. While it is often difficult to predict the direction a […]

Last Christmas, my wife and I received a full case of fresh Florida oranges as a gift from my parents. You can only eat so many delicious orbs of citrus goodness. With a dozen or so fresh oranges left, we broke out the juicer and squeezed them into a sweet […]

From time to time, someone will ask me, “What is a covered put?”. I pause as I know that the following conversation pertains to a little used and often misunderstood strategy. A strategy that has a potentially unlimited risk. A strategy that can be used with a bearish outlook and […]

Implied Volatility is metaphorically like an onion. There’s a lot of layers. Once you peel a layer, there’s another one. Let’s start with the basics. The rest of the details come with more experience and understanding. Simply stated, Implied Volatility is the risk component in option pricing. Let’s take an example […]