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,…
Read MoreStaying Neutral: Employing The Swiss Strategy through GLD
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.
Read MoreFutures, Forwards, and SPOTS: How the World Can Trade Pork Bellies Without Ever Touching a Pig
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…
Read MoreTrading Naked: How to Cover Your Assets
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…
Read MoreTrading Options: Deriving the Value of a Derivative
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…
Read MoreSmart Money: The Poor Man’s Covered Call
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…
Read MoreExtreme Couponing: Stock Edition
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…
Read MoreTrading TBT: It’s Throwback Time to Bonds
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…
Read MoreThe Chicago Cubs Saga: How to Turn Losing into Winning
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.
Read MoreHow to Make Money When the Market Declines
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:
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