Premium sellers should take profits and reduce size as the market may change.
Shorting at 7800 and 9800
Scaling up should be done in stages: first take more risk, then increase contract size
maximize profit with minimal action
The speaker is not considering a trade in S&P due to the significant move.
The speaker suggests that trading more can help overcome loss aversion by building muscle memory and reducing fear of making mistakes. The more trades executed, the less riskier it becomes, as the trader becomes more comfortable with the process.
The market has been in a sideways range with premium contraction, and the speaker has been taking profits fast.
It's a double-edged sword, but I think it's a little bit of overkill for the equity market at least. I'm all for predictive markets, but I don't need the S&P 499.
The speaker suggests looking at the expected move of a stock over a specific period (30-50 days), then setting a target at 25% or 50% of that expected move. They emphasize that this should be less than the expected move and serve as a target, not a hard stop.
For defined risk positions, it's recommended to roll or close the position after 21 days as it cleans up the position tab. However, if left until 14 days or less, the difference is minimal, and there's not much urgency to adjust.
Robinhood Ventures, which invests in pre-IPO deals.
The speaker suggests moving funds to accounts with more optionality and flexibility, such as margin accounts, for greater liquidity and flexibility. They emphasize the importance of having liquid funds and avoiding long-term commitments.
If the call is in the money and the stock is above the strike, the profit is already realized. If the trader wants to keep the stock, they can do nothing and the position will expire. If they want to continue the position, they can buy back the call and sell another one.
Roll calls forward to avoid assignment risk and large tax bill.
A lot better than we handle really bad losing streaks. A lot lot better.
The speaker suggests that keeping the rental property as a diversification is a valid approach, but also acknowledges that managing real estate can be burdensome. They emphasize the importance of considering the scale of the investment and the potential challenges of managing a rental property.
The answer is no, they come back. People are being opportunistic and learn to be opportunistic, so drawdowns shouldn't scare anybody.
The speaker states that Goldman Sachs does not need to split, as the stock price is high but not at all-time highs. They also mention that stock splits are not necessary for companies if they are performing well and do not need to make their stock more approachable.
The speaker explains that selling premiums and focusing on high probability trades is a strategy to develop a culture of more wins than losses for new traders, even though it doesn't guarantee profitability.
Loss aversion is a cognitive bias where investors react more strongly to losses than to equivalent gains. It often leads to emotional decisions in trading.
Loss aversion leads to holding onto losing positions in hopes of breaking even and selling winning positions too quickly, which can result in increased risk-taking and poor trading outcomes.
The speaker suggests buying options occasionally to mix things up, but emphasizes that it should be out-of-the-money options, not deep in-the-money ones. They compare buying options to buying insurance, suggesting it's a form of protection rather than a direct investment.
No, I'm disagreeing with your whole insurance argument and I've always hated this argument when it comes to option trading because I don't consider option sellers to be like insurance.
The rational investor would choose the second option (100% chance of gaining $2,000) because the expected return on that is $3,000.
Nico started trading when he was 12 years old.