Day before earnings – “XYZ reports tomorrow, I know it is going to beat expectations, and I’ve loaded up on calls!” Day of earnings – “XYZ crushed it, but XYZ went down” or “XYZ crushed it, but my calls dropped in value” I receive lots of questions and see plenty […]
Education
26 posts
How well do you know your P&L charts? Good enough that you can quickly guess the underlying position? Take a look at the below and guess what it is (I’ll tell you later, try not to scroll and peek!): I know this isn’t really a hard one. Yes it is […]
When selling options, there is always a chance that the option owner can exercise early, leaving the option seller with stock that they weren’t anticipating – either 100 long shares if they sold a put, or 100 short shares if they sold a call. This can cause confusion, particularly if […]
I don’t win on 100% of my trades. You don’t either. That’s to be expected. You can Estimate the probability of a trade winning in a variety of ways, but it is only an estimate and it certainly isn’t 100%! Sometimes you even place a trade and you are perfectly […]
2020 has been an … interesting year so far, to say the least. In the last year, the market is up 2.29% and year to date the market is down 6.86% [SPX as of 6/26/2020]. These nominal returns hide the fact that we are in the midst of a global […]
Let’s discuss a way to generate a bit of income on our long term stock holdings. This is a slight twist on the traditional covered call approach that I’ll be implementing on one of my underlyings in my long term portfolio. On Friday June 19th, I had some of my […]
I work full time. I have a wife, two kids, and a mortgage. I have enjoyed investing and trading for many years (decades now that I think about it!), but have always needed to find a way to do it part time. Today, I explore some of the advantages to […]
TAL Education Group (Ticker: TAL) For those not familiar, TAL is a holding company and its subsidiaries deal primarily with after school tutoring. China’s market has held up reasonably well, and if you believe the data, they are past the peak of COVID-19 cases. Trade Idea – Sell the 17 […]
This is the fourth in an unexpected series of pointing out glaring errors in Barron’s. For some reason, the editorial quality has dropped off recently, leading to some pretty basic math errors being made and leading to confusion for new option traders. The 3/3/2020 recommends selling puts on BlackRock. A […]
Limited time only! Everything must go! Generic marketing statement! As hard as it is to believe, the market was at all time highs closing on February 19th at 339.08. Here is a three month chart of SPY, showing that peak, plus our recent close of 228.02 on March 20th. It […]