A stock that has dropped 10-20% on the overall market may be a buy opportunity on an individual stock basis.
short call verticals can be used to add income to a bullish portfolio
the market has come back and forth, making it a great selling opportunity
The speaker prefers trading NASDAQ futures or futures options to avoid single stock risk.
the market is expected to correct
bearish on Apple
strangle strategy with specific strike prices and expiration date
futures give the best bang for the buck
A two-sided trade with no directional bias in UNH
Some of them are 10-20% off their highs. These high-flying stocks.
The speaker suggests using a delta range around 30ish for the short strike and recommends a width of 20 to $30 for a $300 stock. They also mention that the strategy is suitable for a bullish portfolio.
You should be super careful because you don't know when the rotation is coming in and going out.
Don't ever forget the luck factors out over time. Don't change your trading strategy regardless of what that strategy is.
Research shows that adjusting the strike to a lower cost basis can provide more protection as the market moves down.
The cost increase is due to the nature of calendar spreads in European-style options, where early exercise is not allowed, and the risk associated with these trades is tied to the premium paid for the calendar spread.
Diversification is recommended. The speaker suggests that if the trade goes well, all accounts will benefit, but if it goes bad, the pressure of managing multiple accounts can be overwhelming. The answer emphasizes that the same trade should be executed based on size, with appropriate sizing for each account.
The speaker confirms that Tesla's report is on Thursday.
Tony suggests a put diagonal strategy for Apple, buying the August 21st 320 put and selling the August 3rd 310 put, with a bearish outlook.
Futures contracts such as the SNQ or long option contracts are better for trending markets.
The speaker suggests using FXY futures as an alternative to trading the yen directly, but acknowledges that there are other more profitable opportunities in the market.
The discussion explores whether large tech companies like TSMC, Google, Apple, Amazon, and others are too big to fail. It suggests that while these companies are significant, it's not clear if they are too big to fail, as their failure could impact the economy, but they might still be able to recover or be acquired.
The speaker suggests that buying close to all-time highs could be risky, as it depends on the company's performance and market conditions. They mention that if a company is acquired, it might be seen as a success, but if it fails, it could be a failure for shareholders.
The speaker has traded them but does not currently trade them, preferring other investments. They mention that three-time leverage ETFs are short-term trading vehicles and not suitable for long-term holding.
The speaker mentions that there are algorithmic platforms that accept retail money, but they do not engage with them personally. They note that some platforms, like Tasty, have APIs that are used for algorithmic trading, and they mention that some people use them for zero-day trades. However, they emphasize that this is not a follow-trade and requires proactive action based on a thesis.
It means the system uses a set of rules or logic to make decisions, but the specific details of what the algorithm does are not explained. The speaker emphasizes the importance of understanding the algorithm's logic to assess its effectiveness.
The speaker discusses whether large companies are too big to fail and considers the implications if capital dries up for capex. They suggest that these companies may not be able to borrow funds if needed, and the question of alternative financing methods is raised.
100%. Could it move outside the expected move? 100%.
The speaker suggests a two-sided trade with no directional bias in UNH, possibly involving strangles or iron condors, and notes that markets are wide and not easily tradable.
The speaker does not like to work and loves their 3-day weekend.