- Alphabet is a strong contender in the tech space, with several growth opportunities available to them
- They are rapidly expanding their artificial intelligence and cloud platforms, while maintaining focus on their core competency, the search engine.
- They have strong financials, with positive cash flows and continued revenue growth
- They are an expensive stock to trade, but there are ways to implement bullish strategies using options to avoid high capital costs
Let Me Google That For You
Alphabet (GOOG) is a staple in the tech industry, and they are constantly engaging in acquisitions and various growth opportunities. Their position isn’t going to be knocked away anytime soon, as they have exposure to almost every new development in the space, ranging from artificial intelligence to self-driving cars.
However, the digital world continues to evolve, and it is increasingly important that Alphabet stays on top of the trends. Search and ad revenue remain key drivers for the company, but other mediums for search, such as voice assistants like Amazon’s Alexa, pose a big risk.
Continue reading “Easy as ABC: How To Trade Alphabet (GOOG) Using Options”
One of the best things about trading options is the math behind it.
Place your strikes based on the deltas. Adjust for your desired probability of profit and risk/reward appetite. Trade in a 45 day cycle. Roll. Place a new trade.
Rinse and repeat.
Continue reading “Staying Neutral: Employing The Swiss Strategy through GLD”
Confession: I normally don’t do much research outside of options and long stock.
Not because the other platforms are some terrible place where people are yelling about pork bellies and soybeans, but simply because I don’t really understand it.
So to make up for admitting my weaknesses in finance on my finance blog, I decided to learn.
Continue reading “Futures, Forwards, and SPOTS: How the World Can Trade Pork Bellies Without Ever Touching a Pig”
I recently had a conversation with a good friend of mine. Our friendship blossomed when he talked about puts one day in our Applied Investments class. My head whipped around to locate the person that was finally speaking my language, and once we did the options trader secret handshake, we became fast friends.
One of our more recent conversations surrounded the economics of options – He said that basically, if you’re on the sell side of a naked option, your margin requirement (collateral) is going to be pretty high.
But I disagree.
Continue reading “Trading Naked: How to Cover Your Assets”
One of the biggest questions that I get asked is: “What’s the point of trading options?” I give the usual spiel:
- Reduce your cost-basis (how much you pay for a trade)
- Increase your profitability (the chance you have to make money)
- Increase the number of trades you can make, putting the law of large numbers in your favor
- Place neutral, bullish, or bearish trades on the market
- Thus, you can make money when the market goes up, down, or all around
- Use math and probability to make money
- Take control of your financial future
- And have fun! 🙂
Continue reading “Trading Options: Deriving the Value of a Derivative”
In my most recent blog post, I talked about shorting/selling a call, aka a covered call. This technique is used as a way to reduce cost basis against shares held, and can also be used as an income generation technique for larger accounts.
However, not everyone has a large account (I definitely don’t). So what are some alternatives to going long on 100 shares and selling a call against it?
Continue reading “Smart Money: The Poor Man’s Covered Call”
In the show, Extreme Couponing, people clip out mass amounts of coupons to accumulate mass amount of goods for absolute pennies. In the very first episode, a woman uses coupons to only pay $100 on her $2,000 grocery bill.
Sounds pretty nice, to save $1,900 right?
What if I told you that you could do essentially the exact same thing with stocks? Pay less for more?
Continue reading “Extreme Couponing: Stock Edition”
The premium in the market is pretty low right now, and we are just on the tail end of earnings season. We look for stocks that have high volatility (thus, high premium) and don’t have any upcoming earnings.
So when I was looking for a trade to place, I was met with a screen full of low numbers:
Continue reading “Trading TBT: It’s Throwback Time to Bonds”
The Chicago Cubs had a legendary losing streak.It had been 108 years since they had won the World Series (1908), and a 71 year gap from the last time that they had even qualified for the Series itself (1945).
That all changed when they won the World Series in 2016.
Continue reading “The Chicago Cubs Saga: How to Turn Losing into Winning”
When you take a trade off, you need to put one back on again.
So that’s just what I did.
I was looking at the Dough platform and running through the checklist in my head:
Continue reading “How to Make Money When the Market Declines”