Trade idea
BABA call spread
The trade involves selling July 10 puts and the 120125 call spread on Alibaba (BABA), which is a bullish play with a delta of 10. This is equivalent to being long 10 shares of stock. The trade is considered a straight bullish play and has a target of 520. The strategy is adjusted by moving the put down to the 105 puts and the call spread to 1520, reducing risk while maintaining the bullish bias. The trade is considered a good opportunity due to the market conditions and the potential for profit.
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Strategycall spread
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggermarket price at mid-point
Target / exit520
Invalidation / stopmarket moves against the bullish bias
SpeakerScott
Structure / legs- July 10 puts
- July 120125 calls
Risks- market moves against the bullish bias
- volatility
- liquidity
Trade idea
silver short strangle
The current short strangle position is not optimal due to the high risk-to-reward ratio. By re-centering the trade in April, the trader can capture additional premium and reduce the risk of a large adverse move. This strategy is effective when volatility remains high, as it allows for capturing the premium while reducing the risk of a large adverse move. The break-even point is around 92, and the trader needs to make back the lost money on the trade.
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Strategyshort strangle
Assetcommodity
ExpirationApril
Time horizonshort-term
Entry / triggervolatility remains high
Target / exitcapture additional premium
Invalidation / stopif silver does not rally
SpeakerScott Sheridan
Risks- volatility may decrease
- silver may not rally
- transaction costs may eat into profits
Trade idea
SPCE call diagonal spread
The bullish diagonal spread on SpaceX involves buying the AUG210 call and selling the July 230 call, resulting in a $14.25 debit. The trade is designed to profit from a price movement within the strike width of $20, offering a favorable risk-reward ratio. The strategy is suitable for traders who expect limited price movement and are bullish on the stock.
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Strategycall diagonal spread
Assetequity
Expiration2021-08-20
Time horizonShort-term, with a potential for profit within the strike width
Entry / triggerStock trading around $190 with a $14.25 debit
Target / exitPrice movement within the strike width of $20
Invalidation / stopSignificant price movement against the trade
SpeakerSpeaker
Structure / legs- buy AUG210 call
- sell July 230 call
Risks- Limited profit potential if the stock doesn't move within the strike width
- Higher risk if the stock moves significantly against the trade
Trade idea
Gold Long-term holding with periodic adjustments
The speaker is bullish on gold, suggesting that it could move back to the high end of its range. They note that gold has been rangebound and that the current low end of the range may be a good entry point. However, they caution against being overly optimistic and suggest that traders should be prepared to adjust their positions if the market moves against them.
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StrategyLong-term holding with periodic adjustments
AssetCommodity
Time horizonShort to medium term
Entry / triggerGold trading within a range, with a focus on the low end of the range
Target / exitPotential for a move to the high end of the range
Invalidation / stopIf gold drops below the low end of the range, consider reducing position size or exiting
SpeakerSpeaker 1
Risks- Market volatility
- Potential for a reversal in the trend
- Failure to adjust positions in response to changing market conditions
Trade idea
XYZ Bull Put Spread
A bull put spread involves selling a put at a higher strike price and buying a put at a lower strike price. This strategy is used when the trader is bullish on the stock and wants to own it at a predetermined price. If the stock price is between the strike prices at expiration, the short put will be exercised, and the long put will be worthless. The trader can then take ownership of the stock at the lower strike price. If the stock price falls below the lower strike price, the trade will result in a loss.
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StrategyBull Put Spread
AssetEquity
ExpirationNot specified
Time horizonUntil expiration
Entry / triggerStock price is between the strike prices
Target / exitStock price reaches the higher strike price
Invalidation / stopStock price falls below the lower strike price
SpeakerNot specified
Structure / legs- Short a put at a higher strike price
- Long a put at a lower strike price
Risks- If the stock price falls below the lower strike price, the trade will result in a loss.
- The trader may have to pay the difference between the strike price and the stock price if the stock is assigned.
- The trader may have to pay additional fees or taxes if the stock is sold.
Trade idea
SPCE selling puts
The speaker suggests that if you are bullish on SpaceX, you should consider selling puts as it could be a better entry point compared to buying at higher prices. The speaker also notes that the stock has settled back to its IPO price of 135 and may continue to trade below this level.
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Strategyselling puts
Assetequity
Time horizonShort-term
Entry / triggerIf the stock is trading below the IPO price of 135
Target / exitA rally in the stock price
Invalidation / stopIf the stock continues to trade below the IPO price
SpeakerThe speaker
Risks- The stock may continue to trade below the IPO price
- The speaker does not provide specific entry or exit points for trades
Trade idea
silver short-term bullish trade
The speaker discusses a poll indicating that 64% of respondents believe silver will make a new high, with the results coming in as 64% to 36%. This suggests a bullish sentiment towards silver, and the speaker implies that the market may be on the verge of a new high. The speaker's comment about the results being 'your 2/3 1/3' indicates a strong majority in favor of a new high. This could be interpreted as a bullish trade idea, with the entry condition being the confirmation of a new high in silver.
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Strategyshort-term bullish trade
Assetcommodity
Time horizonshort-term
Entry / triggerSilver making a new high
Target / exitNew high in silver
Invalidation / stopFailure to make a new high
SpeakerSpeaker
Risks- Market reversal
- Failure to reach the new high
- Volatility in silver prices
Trade idea
AAPL Put Selling
The speaker suggests selling out-of-the-money puts on Apple (AAPL) when volatility is high, as this allows the trader to capture higher premiums. The strategy is based on the assumption that the underlying asset will not decline below the strike price, and the trader will profit from the premium. The speaker emphasizes the importance of selecting a delta that aligns with the trader's comfort level based on the probability of profit, which is calculated as the inverse of the delta minus 100. The strategy involves waiting for the underlying asset to move sideways or higher, rather than waiting for volatility to settle down.
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StrategyPut Selling
AssetEquity
ExpirationNot specified
Time horizonShort-term, with the expectation of the underlying asset moving sideways or higher.
Entry / triggerWhen volatility is high and the trader has a bullish outlook on the underlying asset.
Target / exitProfit from the premium received if the underlying asset remains above the strike price.
Invalidation / stopIf the underlying asset declines below the strike price, the trader may be assigned and have to purchase the asset at the strike price.
SpeakerSpeaker
Structure / legs- Out-of-the-money puts with deltas of 20, 25, 30, 16, etc.
Risks- Risk of being assigned if the underlying asset declines below the strike price.
- Potential for lower-than-expected premiums if volatility decreases.
Trade idea
AMD Broken Butterfly
The speaker suggests that the broken butterfly strategy is suitable for AMD, given the stock's recent volatility. The strategy is typically used when the stock has moved significantly, and the trader is looking to capitalize on a potential reversal or consolidation. The speaker's comments indicate a bullish outlook on AMD, despite the stock's recent movements.
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StrategyBroken Butterfly
AssetEquity
Time horizonNot explicitly stated
Entry / triggerStock has moved around a lot
Target / exitNot explicitly stated
Invalidation / stopNot explicitly stated
SpeakerNot explicitly stated
Risks- Market volatility
- Incorrect price movement
- Liquidity issues
Trade idea
SPO buy the dip
The speaker suggests buying the dip after a significant price increase, indicating a bullish outlook on the S&P 500 index (SPO). The speaker notes that the index has been up 400 points and views this as positive bullish action. The idea is based on the belief that the market is showing signs of optimism and potential for further gains.
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Strategybuy the dip
Assetindex
Time horizonshort-term
Entry / triggerafter a significant price increase
Target / exitnot specified
Invalidation / stopnot specified
SpeakerBrex
Risks- Market volatility
- Potential for further price declines
- Uncertainty in market sentiment
Trade idea
NVIDIA Call options on NVIDIA
If the stock price is around 310-330, and the IVR is low, the call options could be considered relatively cheap. The strategy is to buy call options on NVIDIA if the stock price is around 310-330, assuming the IVR is low. The target is for the stock price to rise above 320, which would indicate a bullish trend. The stop or invalidation is if the stock price falls below 310, indicating a bearish trend. The time horizon is short-term, as the options are for a one-year expiration.
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StrategyCall options on NVIDIA
Assetstock
Expirationone year
Time horizonshort-term
Entry / triggerStock price around 310-330
Target / exitStock price rising above 320
Invalidation / stopStock price falling below 310
SpeakerTony
Risks- Market volatility
- Incorrect assumption about IVR
- Liquidity issues in options
Trade idea
Netflix put ratio spread
This is a bullish strategy
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Strategyput ratio spread
Assetstock
ExpirationAugust
Time horizonnot specified
Entry / triggerstock is down 330
Target / exitcredit of 40 cents
Invalidation / stopstock could go to $10
SpeakerTom Sadov
Structure / legs- buy one August 105 put
- sell two August 95 puts
Risks- stock could go to $10
- adjust strikes down if needed
Trade idea
ES Jade Lizard
The Jade Lizard strategy involves selling naked puts and selling call spreads above the market to hedge and capitalize on bullish expectations. This strategy is capital efficient and has historically performed well over the last 20 years. It is suitable for traders who are bullish on the underlying asset and willing to manage the risk associated with naked puts.
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StrategyJade Lizard
Assetindex
Expirationnot specified
Time horizonlong-term
Entry / triggersell out-of-the-money naked puts
Target / exitprofit from premium and potential upside
Invalidation / stopif the market moves significantly against the short put
SpeakerScott Sheridan
Risks- significant risk if the market moves against the short put
- capital requirements for the short put
Trade idea
Trade idea call diagonal with call skew
relatively cheap
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Strategycall diagonal with call skew
Assetoptions
ExpirationSeptember
Time horizonmonth of August and September
Entry / triggerif you're a little bit bullish
Target / exitplay a little bit
Invalidation / stopif you're a little bit bearish
SpeakerTony Battista
Risks- if you're a little bit bearish, you can do a put diagonal, but you'll pay a lot more
Trade idea
IBM call diagonal spread
long bullish trade
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Strategycall diagonal spread
Assetequity
ExpirationSeptember
Time horizon60ish days
Entry / triggerIBM stock price
Target / exit225
Invalidation / stopIBM has a big move lower or higher
SpeakerSosnoff
Structure / legs- September 225 call
- August 240 call
Risks- max risk $7.25
- not a trade to put on when IBM is higher
Trade idea
Trade idea defined risk trade
The speaker recommends using a bullish strategy on a down day, such as a vertical spread, to capitalize on potential upward movement. This approach is considered a defined risk trade, which limits potential losses while allowing for profit if the stock moves in the desired direction.
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Strategydefined risk trade
Assetstock
Time horizonshort-term
Entry / triggeron a down day
SpeakerTony
Risks- Market volatility
- Incorrect assumptions about stock behavior
Trade idea
SPAC Diagonal Spread
The trade is slightly bullish, with a potential upside of $21. The maximum risk is $440, and the trade is based on the expectation that the stock will rise due to the S&P 500 indices. The trade is structured as a diagonal spread, with the buy leg at $167 and the sell leg at $189, with a $4.40 debit.
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StrategyDiagonal Spread
AssetEquity
ExpirationJuly
Time horizonUntil July expiration
Entry / triggerStock price at $116 and change
Target / exitStock price reaching $189
Invalidation / stopStock price falling below $167
SpeakerVinnie
Structure / legs- Buy the July 17th shorterd dated 167
- Sell the July with 10 days 189 call
Risks- The stock could fall below $167
- The S&P 500 indices may not perform as expected
- Market volatility could impact the trade
Trade idea
ZN selling puts
The speaker is selling puts on the 10-year note (ZN) to gain exposure to a potential decline in interest rates. The strategy is based on the expectation that rates will decrease, which would increase the value of the note. The trade is considered bullish, and the speaker is willing to take on short delta to benefit from the anticipated move. The risk is that if rates do not decline, the put could be exercised, resulting in a loss.
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Strategyselling puts
Assetinterest rate
Expiration10-year note
Time horizonshort-term
Entry / triggerexpecting interest rates to decline
Target / exitinterest rates come down a little
Invalidation / stopif rates do not decline
Speakerunknown
Risks- Interest rates may not decline as expected
- Market volatility could impact the note's price
Trade idea
COIN Wide Iron Condor or Wide Strangle
The speaker suggests that COIN (Coinbase) is a viable candidate for wide iron condors or wide strangles due to its liquidity and the potential for a wide range. The speaker notes that COIN has had a significant price movement and is currently at a level that could allow for a wide spread, making it an attractive option for collecting premiums. The strategy is based on the idea that the market may not move significantly within the range, allowing the trader to profit from the premium collected.
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StrategyWide Iron Condor or Wide Strangle
AssetEquity
Time horizonShort-term
Entry / triggerMarket conditions allow for wide strangles or condors
Target / exitCollect premium from wide range
Invalidation / stopMarket volatility or unexpected news
SpeakerUnknown
Risks- Market volatility
- Unexpected news or events
- Liquidity issues
Trade idea
LEAP Straddle
The proposed strategy involves selling a put and using the proceeds to buy a call, effectively creating a synthetic long position. This strategy is designed to profit from volatility, assuming the underlying asset (LEAP) will experience significant price movements. The thesis is based on the idea that the put sale generates capital that can be reinvested in a call, allowing for potential gains from both upward and downward price movements. However, the strategy is not without risk, as the underlying asset could move significantly against the position, leading to losses.
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StrategyStraddle
AssetEquity
ExpirationMinimum 1 year
Time horizonMinimum 1 year
Entry / triggerSell a put and buy a call with the proceeds from the put sale
Target / exitProfit from volatility
Invalidation / stopLoss if the underlying asset moves significantly against the position
SpeakerUnknown
Risks- Significant price movements against the position
- Market volatility
- Liquidity issues in options trading
Trade idea
SPACEX Butterfly spread
The speaker suggests that a butterfly spread on SpaceX could be constructed with an expected move of $42. The strategy involves setting the width of the strikes based on the expected move, with the put side being adjusted more aggressively if the trader is bullish. The speaker also notes that the volatility in SpaceX is still relatively high, making the butterfly spread potentially more expensive. The thesis is based on the expected move and the volatility levels, with the potential for profit if the stock moves within the expected range.
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StrategyButterfly spread
Assetequity
ExpirationAugust
Time horizonShort-term
Entry / triggerExpected move of $42
Target / exit42 higher
Invalidation / stopIf the expected move is not realized
SpeakerScott
Risks- Volatility could lead to higher costs
- The expected move may not materialize
- Liquidity issues in the options market
Trade idea
Trade idea holding the position
If you're long a 1oz gold future, just hold on to it. If you're short, hold on to it as well. The directional trade should be held until your assumption changes.
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Strategyholding the position
Assetfuture
Entry / triggermarket needs to breathe
SpeakerUnknown
Trade idea
silver call spread
Arthur proposed a $10 wide bull call spread on silver for July 26, with strike prices of 310 to 321. The trade is intended to benefit from management, but the specific management strategy or risk mitigation plan is not detailed in the transcript. The trade idea is based on the assumption that the market will move in a bullish direction, allowing the call spread to profit from the price increase.
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Strategycall spread
Assetcommodity
ExpirationJuly 26
Time horizonnot specified
Entry / triggerbefore management
Target / exitpotential benefit from management
Invalidation / stopnot specified
SpeakerArthur
Structure / legs- call option with strike price 310
- call option with strike price 321
Risks- Market volatility
- Inadequate management strategy
- Potential for loss if the market does not move as expected
Trade idea
Trade idea Bull call spread
The trade involves a bull call spread with a $10 width, where the trader pays one-third the width of the strike. The strategy is to take profits when the trade reaches a 50% profit level, as the trade is unlikely to maximize within six months. The trader should exit the trade early to avoid potential losses if the trade does not perform as expected.
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StrategyBull call spread
ExpirationJuly
Time horizon6 months
Entry / triggerBuy a debit spread with a $10 width
Target / exit50% profit
Invalidation / stopIf the trade does not reach the target within six months
SpeakerArthur
Risks- The trade may not reach the target profit level within the time horizon
- The trade may not maximize within six months
Trade idea
Trade idea covered calls
the market is expected to correct
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Strategycovered calls
Assetstock
Time horizonshort-term
Entry / triggerif the market is expected to correct
Target / exitreduce delta to 50 or 70
Invalidation / stopif the market moves significantly against the position
Speakerunknown
Risks- loss of potential gains if the stock price rises significantly
Trade idea
INFQ bullish
The speaker is still bullish on INFQ and expects it to perform well.
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Strategybullish
Assetstock
Entry / triggermarket open
Target / exithigher
SpeakerTom Sosnoff
Trade idea
Nvidia Sell Puts
The speaker suggests selling puts on Nvidia as a strategy to collect premium while potentially buying the stock at a lower price. They argue that buying calls is not ideal for Nvidia due to the lack of a clear target and the risk of wasting premium. Instead, selling puts allows the trader to benefit from the premium and potentially own the stock at a discounted price if the stock is below the strike price at expiration. The speaker also notes that the stock is currently at the low end of its range, making it a potential candidate for a short-term trade.
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StrategySell Puts
AssetEquity
Time horizonShort-term to medium-term
Entry / triggerIf the market is expected to remain stable and the stock is within a range
Target / exitTo collect premium while potentially buying the stock at a lower price
Invalidation / stopIf the stock breaks below the put strike price
SpeakerThe speaker
Risks- The stock could fall below the put strike price, resulting in a loss
- Market volatility could impact the stock price
- The trader may be forced to buy the stock at a higher price than expected
Trade idea
Trade idea call spread or broken wing butterfly
The speaker suggests avoiding buying premium (calls or puts) when implied volatility is expensive, especially before earnings. Instead, they recommend using strategies like a call spread or a broken wing butterfly to limit risk while still participating in potential upside. This is particularly relevant for assets like Meta, where the speaker acknowledges the potential for earnings beats but is cautious about high volatility.
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Strategycall spread or broken wing butterfly
Assetoptions
Time horizonshort-term
Entry / triggerwhen implied volatility is expensive and earnings are approaching
Target / exitlimited upside with defined risk
Invalidation / stopif volatility remains high or earnings disappoint
Speakerspeaker
Risks- High volatility could lead to losses if the market moves against the position
- Earnings could disappoint, leading to a drop in the underlying asset
Trade idea
NVDA synthetic strangle
The synthetic strangle is a strategy that allows the trader to collect premium while limiting risk. The trader is bullish on Nvidia and believes that the stock will rally, which would make the put side of the trade profitable. The call spread is expected to be worth around $7 if the stock rallies to $200-$215. The trader is willing to take a risk to the downside if the stock moves significantly against the position.
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Strategysynthetic strangle
Assetequity
ExpirationAugust
Time horizonShort-term
Entry / triggerNvidia is trading around $194
Target / exitCollecting $3.40 to $15 bucks or more
Invalidation / stopIf the put side of the trade is not trading for a buck or two, the trade may not be profitable
SpeakerBat
Structure / legs- Sell 20/15 call spread
- Sell August put
Risks- Risk to the downside if the stock moves significantly against the position
- Risk of the put side of the trade not being profitable
- Risk of the call spread not being worth the expected amount
Trade idea
NFLX sell puts
The speaker suggests selling puts on Netflix (NFLX) as a strategy for the earnings cycle, given the improved liquidity and market conditions. The rationale is that the probability of profit remains consistent, but the potential reward is higher in high volatility. The speaker also mentions adjusting position sizes based on volatility levels and avoiding vertical spreads due to the lack of liquidity in the past.
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Strategysell puts
Assetequity
Expirationearnings date
Time horizonshort-term
Entry / triggerif the stock is bullish
Target / exitprofit from the premium
Invalidation / stopif the stock moves below the put strike price
SpeakerScott
Risks- significant loss if the stock moves against the position
- limited liquidity in certain strike prices
Trade idea
CL short put
The speaker is bullish on CL (Crude Oil) and is short puts, indicating a belief that the price will not fall significantly. The strategy involves selling out-of-the-money puts to collect premium, with the expectation that the underlying asset will remain above the strike price. The speaker acknowledges that the market may not sharply rise but believes in the continued premium collection through short puts.
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Strategyshort put
Assetcommodity
Expirationnot specified
Time horizonnot specified
Entry / triggermarket on close
Target / exitnot specified
Invalidation / stopnot specified
SpeakerTom
Risks- If the price of CL falls below the strike price, the short put position could result in losses.
- Market volatility could lead to unexpected price movements, affecting the effectiveness of the strategy.
Trade idea
MRVL bullish vertical spread
The speaker suggests a bullish vertical spread for Marvell (MRVL) ahead of its earnings report. The strategy involves buying the 250 calls, selling two of the 260s, and buying one of the 280s. The speaker estimates the cost to be around a dollar 20 credit, with a 90% probability of profit. The expected move is $36, and the trade is considered outside the expected range. The speaker also notes that if the earnings are blowout, the 260 strike price could be a target.
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Strategybullish vertical spread
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggerbefore earnings report
Target / exit260 strike price if earnings are blowout
Invalidation / stopif the stock is down or unchanged
Speakerunknown
Structure / legs- buy 250 calls
- sell two 260 calls
- buy one 280 calls
Risks- The trade is outside the expected move
- The speaker estimates the cost and probability of profit
- The trade is for July, which is before the earnings report
Trade idea
Trade idea jade lizard
reduces risk on naked put
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Strategyjade lizard
Assetstock
Entry / triggerstock trading at $500
Target / exitcollect credit to the upside
Invalidation / stopbreak even under $430
Speakerunknown
Structure / legs- sell 510-520 call spread
- sell SE 430 put
Trade idea
Service Now Long Call Diagonal Spread
The trade is considered bullish with a focus on upside potential.
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StrategyLong Call Diagonal Spread
AssetEquity
ExpirationAUG
Time horizonShort-term
Entry / triggerStock is higher by $160
Target / exitUpside play
Invalidation / stopIf the stock is oversold and the puts are not bid
SpeakerKathy Woods
Risks- Market volatility
- Underperformance of the stock
Trade idea
SPX Broken Wing Butterfly
The broken wing butterfly is a high probability trade with an 80-90% chance of profit. The trade involves buying a put at 6650, selling two puts at 6755, and buying a put at 6800. The risk-reward ratio is favorable, with a $34 credit on $5,000 risk. The trade is synthetically long a butterfly and short a put spread, providing protection against downside while capturing upside potential.
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StrategyBroken Wing Butterfly
AssetIndex
ExpirationLast night
Time horizonMonth
Entry / triggerPrices at 6755
Target / exitMax profit of $5,000
Invalidation / stopIf the price moves beyond the expected move of $330
SpeakerTony
Structure / legs- Buy 6650 put
- Sell two 6755 puts
- Buy 6800 put
Risks- Market movement beyond expected range
- Volatility changes
- Liquidity issues
Trade idea
Microsoft covered call
The speaker suggests that for a Microsoft position already held, selling a covered call at the money is preferable if the trader is bullish and wants to keep the stock. If the trader is less bullish but still wants to hold the stock, selling a covered call out of the money is recommended. The reasoning is that at-the-money calls provide more premium, while out-of-the-money calls offer more room for the stock to move upward.
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Strategycovered call
Assetstock
Time horizonshort-term
Entry / triggerMicrosoft stock position already held
Target / exitmaximize premium or give room for upside
Invalidation / stopif Microsoft stock moves significantly upward and the trader is willing to lose the stock
SpeakerTony
Structure / legs- covered call on Microsoft position
Risks- Potential loss of upside if the stock moves significantly upward
- Premium received may be lower if the call is out of the money
Trade idea
AMZN selling a 30 delta put
If the trader is mildly bullish on Amazon, selling a 30 delta put is a viable strategy. This allows the trader to collect premium while waiting for the stock to move. The expected move for Amazon is approximately 10% over 52 days, which makes this strategy attractive. However, if the trader is ragingly bullish, buying the stock outright is more advantageous. The decision should be based on the trader's subjective feeling about the stock and the current implied volatility levels.
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Strategyselling a 30 delta put
Assetequity
ExpirationAugust
Time horizon52 days
Entry / triggerif the trader is mildly bullish on Amazon
Target / exitthe strike price of the put
Invalidation / stopif the stock moves significantly higher, the put may be out of the money, and the trader could consider adjusting the position
SpeakerTom
Risks- If the stock moves significantly lower, the trader may be obligated to buy the stock at the strike price.
- Implied volatility can change rapidly, affecting the premium collected or paid.
Trade idea
Nvidia call spread
The speaker suggests a call spread strategy for Nvidia, selling the 225 235 call spread and buying the 160 put, with a target of collecting a 265 credit. The trade is based on the belief that the stock is in a range and that a significant upward move is unlikely. The speaker references a similar trade executed in August, indicating a pattern of using this strategy when the stock is in a range and the trader is moderately bullish.
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Strategycall spread
Assetstock
ExpirationAugust 21st
Time horizonShort-term
Entry / triggerStock price around 196
Target / exitCollect a 265 credit
Invalidation / stopIf the stock moves significantly higher or lower
SpeakerSpeaker
Structure / legs- sell the 225 235 call spread
- buy the 160 put
Risks- Potential for the stock to move beyond the strike prices
- Volatility could impact the trade's profitability
- Market conditions may change rapidly
Trade idea
NVIDIA covered call
The speaker believes that NVIDIA is a strong stock with significant valuation potential, and the covered call strategy allows for capturing upside while limiting downside risk. The trade is considered viable if the stock price moves within a 20-30% range, with the strike price set near the current price of 170. The speaker acknowledges that the stock could move lower, but the trade is still considered favorable due to the potential for a large move.
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Strategycovered call
Assetequity
ExpirationApril
Time horizonShort-term
Entry / triggerStock price near 170
Target / exitPrice movement of 20-30%
Invalidation / stopMarket downturn or significant price drop
SpeakerSpeaker
Structure / legs- strike price: 174
- expiration: April
- credit received: not specified
- probability of profit: not specified
Risks- Market downturn
- Price volatility
- Limited upside potential
Trade idea
NKE selling puts
The speaker suggests selling puts as a strategy for earnings, leaning bullish or omnishirectional. This approach is suitable when volatility is cheap, and the stock feels like it's trading cheap, even if it's not technically cheap. The rationale is that selling puts can generate income while being long the stock, and the expected move is limited. The trade requires monitoring the stock's performance and adjusting as needed.
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Strategyselling puts
Assetequity
Time horizonshort-term
Entry / triggerwhen volatility is cheap and earnings are expected to be positive
Target / exitprofit from the put sale if the stock trades above the strike price
Invalidation / stopif the stock drops below the strike price, the trade may need to be adjusted or closed
SpeakerArthur
Risks- If the stock drops below the strike price, the trade may result in a loss
- Volatility could increase, affecting the price of the put
Trade idea
NKE call spread
The speaker suggests that a call spread or directional trade on Nike (NKE) could be a viable strategy when volatility is low. However, they caution that this is a 'cheap shot' and not a reliable strategy for long-term success. The trade requires a strong directional conviction and is not recommended for all traders.
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Strategycall spread
Assetequity
Time horizonshort-term
Entry / triggervolatility is low
Target / exitdirectional move
Invalidation / stopif the stock moves against the trade
Speakerunknown
Risks- loss if the stock moves against the trade
- requires precise timing and directional conviction
Trade idea
SPACEX call spreads
The transcript suggests that due to the expected call skew, call spreads above the market will trade cheap. This makes call spreads an attractive strategy for bullish positions, as they are likely to be undervalued relative to put spreads. The speaker also references historical examples like GameStop, where call spreads were significantly cheaper than put spreads during periods of high volatility.
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Strategycall spreads
Assetequity
Expirationnot specified
Time horizonshort-term
Entry / triggerhigh volatility environment
Target / exitnot specified
Invalidation / stopnot specified
Speakernot specified
Structure / legs- call spreads above the market
Risks- Market movement may not align with expectations
- Volatility could decrease, reducing skew
Trade idea
S&P 500 buying the dip
The speaker suggests that buying the dip is a reasonable strategy, as it involves purchasing assets during a pullback with the expectation that prices will rise again. The reasoning is that markets often rebound from dips, and buying during these periods can be profitable. However, the speaker also notes that buying the dip is difficult, as it requires patience and the ability to withstand short-term volatility. The proposed execution involves identifying pullbacks and entering positions with the expectation of a recovery. The risks include the possibility of further declines, which could invalidate the trade.
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Strategybuying the dip
Assetindex
Time horizonshort-term
Entry / triggerpullback in the market
Target / exitrecovery to previous levels
Invalidation / stopfurther decline below the pullback level
SpeakerSpeaker
Risks- Further market decline
- Failure to recover to previous levels
- Emotional decision-making during volatile periods
Trade idea
Nasdaq short strangles
The speaker believes the Nasdaq will rally at some point today and suggests selling after the rally. They mention being short some wide strangles, indicating a strategy of selling volatility through strangle positions. The thesis is based on the speaker's observation of the market's behavior and their expectation of a rally followed by a sell-off.
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Strategyshort strangles
Assetindex
Time horizonshort-term
Entry / triggermarket rally
Target / exitsell after rally
Invalidation / stopmarket reversal
SpeakerSpeaker
Risks- Market reversal could lead to losses if the rally does not occur as expected.
- Volatility could increase, affecting the effectiveness of the strangle strategy.