The speaker believes that Microsoft and SpaceX are potential stocks to buy, given their performance and the possibility of recovery.
buying bonds at 10912
Strong bearish thesis on a specific name
Volatility is too high and the stock has been moving lower, so selling the 90 strike was a strategic move.
contrarian trade
The trade is considered bullish with a focus on upside potential.
Sell volatility in a large-cap company with high volatility
short strangle is preferred over iron condor due to higher probability of profit and fewer contracts
Buy a little AMD here for a scalp
sell options for scalp
the yen is a commodity that can be traded like natural gas or soybeans
The speaker is interested in opportunities where assets are significantly down from their highs.
The speaker emphasizes the importance of respecting the market's movements, particularly on a short-term basis. They acknowledge that while long-term strategies may not always align with immediate market actions, short-term decisions should reflect the current market conditions.
Corporate bonds are more volatile than treasuries, with a typical 25% faster move in response to market changes. This increased volatility makes corporate bonds riskier, especially in rising interest rate environments.
The speaker acknowledges that the S&P 500's drop is somewhat surprising, as it was up the previous night.
30-year bonds are trading for 10913.
The speaker suggests that if someone is getting lucky in a good market, they are effectively getting better. They emphasize evaluating progress through P&L (Profit and Loss) as the primary metric.
The speaker suggests that when everything else is working and one thing isn't, it's time to put the trade on the back burner.
Futures options are more capital efficient on entry compared to equity options, but the capital efficiency can vary depending on the specific contract and market conditions. Futures options typically require less capital due to dynamic margin requirements, but the efficiency may not hold throughout the entire trade lifecycle.
The speaker is short the 90 strike on SpaceX.
The speaker believes the answer is likely yes, as there's no reason for it to take six months to release another version.
The market is soft, with the S&P down 78, NASDAQ down $440, gold down $106, oil up $4.73, and the 10-year yield at 4.7.
Buy the 125 call and sell two of the September 145s.
Sell puts at 10, 105 volatility, 110 volatility
The short strangle has fewer contracts and a higher probability of profit, while the iron condor has more contracts and a lower probability of profit.
The speaker does not think Kevin Worsh is overly concerned about inflation. They believe his primary concern should be inflation, as it is the Fed's main responsibility.
Corporate bonds are more volatile than treasuries, with a typical 25% faster move in response to market changes. This increased volatility makes corporate bonds riskier, especially in rising interest rate environments.
The speaker prefers to stay mechanical with 40-day expirations and avoids laddering out contracts, as it complicates management. They mention using monthly expirations for consistency and simplicity.
Salana is around 76. It was like 76 and change. And it really it got into the 60s and it's been the strongest cryptocurrency.
Google is not on sale at its current price of $319. It would need to drop to $250 or lower to be considered on sale.
Defined risk trades should allocate 25 to 40% of capital, with per trade allocations ranging from 0.3% to 1.5% of available buying power. Undefined risk trades can use 3% to 10% of available buying power, with 3 to 7% being a common range. The allocation is not equal one-to-one due to differences in risk and potential gains.
The collar strategy is synthetically a long vertical call, and it can be used with a specific underlying asset like GM. The cost of implementing a collar can vary depending on the delta and time to expiration.
The video will be dropped right after the show at 10 a.m. Central time.