An epic battle between the bond market and the Fed is setting up. It may be a monumental one. For the past year, the Federal Reserve has been pumping money into the system via bond buying and a zero interest rate policy. These accommodations allowed our economy to sidestep a potential second Great Depression, or…
Details
This article is the final of a three part series about the recent GameStop saga. You can find the first article, “GameStop and the Short Squeeze” here, and the second on, “Short Selling Is a Vital Trading Activity” here.Today, we are talking about what would have happened if GameStop traders had practiced good risk management.…
Details
LEAPS in 2021: Our Picks This Year – Webinar Recap It’s time for our annual options trading webinar on LEAPS in 2021. In this advanced strategy, you use diagonal calendars to set up high probability bets for long call and put strategies. During the webinar, we discussed: Why and when to use LEAPS Examples of…
Details
This article is part two of a three part series about the recent GameStop saga. You can find the first article, “GameStop and the Short Squeeze” here. Today we are talking about short selling and its role in a healthy market. Remember those Merrill Lynch commercials from years ago that stated “We are bullish on…
Details
This is the first of a three part series on the recent short selling drama caused by traders on the subreddit Wallstreetbets. First, we cover the short squeeze, a classic play. All that anyone could talk about at the end of January was the rapid rise in GameStop’s stock price. This struggling retailer saw its…
Details
Stock prices move for a myriad of reasons, and as traders, we want to know why. This is the wrong question to ask, because why stock prices move doesn’t matter. You might feel more confident about placing a trade if you understand the logic behind the price move, but often, there is no logic. While…
Details
Trading in 2021: What to Expect This Year – Webinar Recap Trading in 2021 is off to a great start. Indices have hit all-time highs, and Q4 earnings reports are looking strong. However, there are some headwinds here and there. During this options trading webinar, we talked about the variables – good and bad –…
Details
We are not even finished with January, and we’ve already experienced a whirlwind of activity. We have a new presidential administration, covid-19 vaccines are getting distributed, and the very bruised and beaten economy is showing some green shoots. Finally, there is a light at the end of the tunnel. So what does that mean for…
Details
Just when you thought you had escaped the clutches of 2020, I’m here to bring it back into the picture. I’ll be blunt: The current stock market action has me worried. I see some similarities here that are tugging at me, so let’s take a deeper dive into what’s going on. The overall picture is…
Details
Many investors and traders are looking at the market and wondering how in the heck they can continue higher. A lot of the frenzy is being driven by overbought and overvalued stocks. (This is very different from overbought or oversold markets, which I cover here.) Just look at Tesla. This stock has soared to crazy…
Details