Trade idea
Trade idea
having no directional opinion and selling premium on both sides is a good strategy
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Entry / triggerselling premium on both sides when there is no directional bias
SpeakerBat
Trade idea
Trade idea strangle
short premium play
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Strategystrangle
Time horizonshort-term
Entry / triggerselling a strangle in SanDisk with zero directional bias
Target / exittwo times the expected move on the call side and three times on the put side
Invalidation / stopno directional bias, emotional neutrality
SpeakerTony
Risks- emotional neutrality
- volatility contraction
Trade idea
Trade idea short puts
We're going to sell puts and we're never going to flip those cards over.
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Strategyshort puts
Assetoptions
Entry / triggerwhen the sell-off doesn't stop
SpeakerSpeaker 1
Trade idea
Trade idea wheel strategy
The wheel strategy is working for the speaker, and they suggest continuing with it.
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Strategywheel strategy
Entry / triggerselling an at-the-money or in-the-money put and taking it getting assigned the stock and then selling calls against it
SpeakerUnknown
Trade idea
SPY monthly strangles
challenge to go shorter dated with strategy
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Strategymonthly strangles
Assetequity
Time horizonshort-term
Entry / triggerusing $60,000 buying power
Target / exitmaximize account size
Invalidation / stopdefine risk, $20 wide iron condor or synthetic strangles
SpeakerNotredogus
Risks- volatility at lows down 50%
- account size limitations
Trade idea
Trade idea rolling both the long and short strike
rolling both the long and short strike is a choice that depends on the trader's preference and market conditions
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Strategyrolling both the long and short strike
Entry / triggerwhen rolling the untested side
Speakerspeaker
Trade idea
Trade idea Wheel strategy
The wheel strategy is up to the trader if they want to implement it on oversold stocks.
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StrategyWheel strategy
Entry / triggerSell a put under where the stock is, and then sell a call.
SpeakerUnknown
Trade idea
Trade idea Ratio put spread
Bullish trade with 70% to 90% probability of success
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StrategyRatio put spread
ExpirationAugust
Time horizon45 days out
Entry / triggerStock price around 360
Target / exitMake a couple of bucks in front of a down move
SpeakerTom
Structure / legs- Buy 330 put
- Sell two 320 puts
Risks- Market moves against the trade
- Volatility changes
Trade idea
Trade idea
Keep the position open and let it expire.
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Time horizonTomorrow
Entry / triggerA SPX $5 wide put vertical spread currently at max loss.
SpeakerTom
Q&A
What is the current state of the S&P and Nasdaq?
The S&P is unchanged, while the Nasdaq is down 250 points.
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Actionable takeawayThe S&P and Nasdaq are showing mixed performance with the S&P remaining flat and the Nasdaq declining.
Q&A
Several high-profile companies have split their stock in recent years for a variety of reasons. Are stock splits a good thing?
Stock splits are generally a good thing as they allow more people to participate and make stocks more tradeable. However, the impact on the company itself is considered a wash, and the results over time are random.
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Actionable takeawayStock splits can be beneficial for traders by increasing liquidity and accessibility, but their impact on the company's performance is not guaranteed.
Q&A
Is emotional neutrality an advantage, or do you still need a thesis on volatility, liquidity, or the underlying to manage the trade well?
Emotional neutrality is an advantage when selling premium on both sides with no directional bias. It allows for a more balanced approach to managing the trade.
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Actionable takeawayEmotional neutrality is beneficial when selling premium on both sides without a directional bias, as it allows for a balanced approach to trade management.
Q&A
At what point does a stock that has been beat down for so long become a reason to sell puts rather than just trying to catch a falling knife?
The speaker suggests selling puts on stocks like Nike, Uber, Micron, and others, arguing that selling puts is a better strategy than trying to catch a falling knife. They emphasize that selling puts can be a way to profit from volatility and avoid the risk of buying a stock that might continue to decline.
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Actionable takeawaySell puts on beaten-down stocks to profit from volatility rather than trying to catch a falling knife.
Q&A
What do you think about SpaceX earnings? Do you keep your short puts or do you make adjustments?
The speaker keeps their short puts and does not make adjustments.
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Actionable takeawayMaintain short puts without adjustments during earnings.
Q&A
Is there a point where a stock is just too cheap for its options to be worth trading?
The speaker suggests that stocks under $30 can be viable for trading, but stocks under $15 are less popular for selling premium. They also mention that the liquidity and premium available are more important factors than the stock price itself.
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Actionable takeawayStocks under $30 can be viable for trading, but stocks under $15 are less popular for selling premium. Liquidity and premium availability are more important factors.
Q&A
Will Boeing deliver its first 737 Max 7 to Southwest Airlines?
The speaker cannot provide an answer due to potential insider information, but they speculate that it may not happen before the end of 2026.
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Actionable takeawayAvoid making assumptions without verified information.
Q&A
How much should I be risking per trade at that account?
For an account size of $170,000, the speaker suggests risking no more than $10,000 on undefined risk trades and between $1,000 to $1,700 on defined risk trades. The risk percentage is around 5% of the account size.
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Actionable takeawayRisk management should be based on account size, with defined risk trades having lower risk percentages and undefined risk trades having higher risk percentages.
Q&A
What are your thoughts on SKHY?
SKHY is tradable, and the speaker has traded it a couple of times. The speaker mentions that it's very tradable and that the market there was tradable. The speaker also mentions that the implied volatility is high, but it's not a concern as long as the trader is comfortable with the risk.
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Actionable takeawaySKHY is considered tradable with high implied volatility, but the trader should be comfortable with the risk.
Q&A
Should I maybe move to a wheel strategy? And sell contracts down a little bit?
The wheel strategy is up to the trader if they want to implement it on oversold stocks.
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Actionable takeawayThe wheel strategy is a viable option for traders looking to implement it on oversold stocks.
Q&A
What are the different strategies I should be running into that?
The speaker suggests adjusting positions daily to maintain a zero beta or similar, and checking delta and P&L for each position.
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Actionable takeawayAdjust positions daily to maintain a zero beta or similar, and check delta and P&L for each position.
Q&A
Can you give me a quote on SanDisk?
SanDisk's stock is down $60 at 1288. The speaker mentions it's perfect for a strangle position.
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Actionable takeawayThe speaker suggests SanDisk is a good candidate for a strangle strategy due to its current price movement.
Q&A
What is the role of algo trading in the market?
Algo trading is a significant part of the market, with algorithms handling a large portion of trading volume. They are not emotional and focus on mathematical models rather than subjective market direction.
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Actionable takeawayAlgo trading is a key component of market activity, providing liquidity and price efficiency through mathematical models.
Q&A
Tom, are you doing anything in Microsoft with the stock up 2% today?
The speaker is considering a short position in Microsoft, but is not yet committed. They plan to short Microsoft if the stock reaches $500 before the show ends.
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Actionable takeawayConsider shorting Microsoft if the stock reaches $500 before the show ends.
Q&A
Is there a hidden risk in private credit markets?
The speaker suggests that while there is a lack of transparency in private credit markets, it doesn't necessarily mean there's a hidden risk. They mention that these markets are usually tied to interest rates and have flexible variable rates, and they are on the books of the companies involved. However, they also express concern about the private derivatives market being more risky.
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Actionable takeawayThe lack of transparency in private credit markets may not necessarily indicate hidden risks, but the speaker expresses concern about the private derivatives market being more risky.
Q&A
Is the lack of transparency hiding some risks that none of us can really measure?
The speaker believes that lack of transparency is a risky thing, and that the lack of transparency in the private credit market is not good. However, the lack of transparency in the over-the-counter derivatives market is even worse, with risks that are not visible.
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Actionable takeawayThe lack of transparency in private credit and OTC derivatives markets poses significant risks that are not easily measurable or visible.
Q&A
Is it possible to arb the prediction markets? Can you build your own tool to arb the prediction markets?
It is possible to arbitrage in illiquid markets, but not in listed places due to lack of fungibility, high fees, and wide spreads. Arbitrage opportunities between prediction exchanges are limited, and holding positions for long periods is not practical for retail traders.
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Actionable takeawayArbitrage in prediction markets is feasible in illiquid markets but not in listed exchanges due to market structure and costs. Retail traders should avoid attempting this due to practical limitations.
Q&A
Are we going to be absolute obsolete, Sal Auslander?
No, AI will not make traders obsolete because the future of value is on content and creativity.
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Actionable takeawayAI will assist in checking trade criteria but won't replace the need for content and creativity in trading.
Q&A
Are you long crude oil or USO?
Tom is long Delta, not technically long CL. He is short puts and short calls, with calls further out of the money than puts.
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Actionable takeawayTom's position involves short puts and short calls with different strike prices.