39 Burst results for "Stock Market"
Fresh "Stock Market" from America First with Sebastian Gorka
"Risk the bulbous well written the name your price tool only from progressive afoul of the comatose coxswain, Chris Casualty insurance Company Pavilion, special coverage, mental activity. Club. Hey, y'all parents, Rucker here, you know, A lot of people Ask me what inspired your music, and one of the big things is a strong sense of place. That's why I love my home state of South Carolina and want to share the awesome things it has to offer from the beautiful mountains down to the sunny coast. It's got it all, not to mention two of my personal favorites, Great Gulf and amazing food. Come see why I love this place visit. Discover South Carolina dot com You didn't stop them hold on its program. Did you know in the last four years the market went up 74%. But the economy went down 50%. How can that be? How do you have a market going up on the economy going down? I thought you had to have a good economy for the stock market to go up. No more, not what financial engineering. That would quantitative easing. Not with stock buybacks height. This is Phil Grandi. Think of what these Gangsters have been doing. They've been going out and they've been purchasing Treasuries to get interest rates down to zero. How do they do that? They print money and they buy these treasures get interest rates down the zero. Then they loaned it to the CEOs of the companies at zero interest, and then they simply by their own shares. Oh, I forgot to tell you that when they put that money You know those dollars in your pocket? Go down that. In fact, in the last five months, the dollar value in your pocket It's one of those pieces of paper went down 14%. This is nuts. That's why you need to join my gang. Find out more at Phil's gang calm pills gang dot com. I'm a coffee being born and.
Microsoft Is Acquiring Nuance Communications
"Microsoft has acquired speech tech company nuance for nineteen point. Seven billion dollars in cash a twenty three percent premium on its friday closing price on the stock market quoting cnbc the nuance acquisition represents microsoft's largest acquisition since it bought linked in for more than twenty six billion dollars in two thousand sixteen. It's the latest sign. Microsoft is hunting for more growth through acquisitions. The company is also reportedly in talks to buy the chat app. Discord for about ten billion dollars on top of that microsoft made an effort to bhai tick tock. Us business last year for about thirty billion dollars before the deal was derailed. Last month microsoft completed its seven point six billion dollar acquisition of gaming company zan amax nuance would be aligned. With the part of microsoft's business that serves businesses and governments nuance derives revenue by selling tools. For recognizing and transcribing speech in dr office visits customer service calls and voicemails in its announcement microsoft said nuances. Technology will be used to augment microsoft's cloud products for health care which were launched last year in an interview on cnbc squawk on the street. Monday microsoft ceo such an adela highlighted nuances healthcare tools as the key driver behind the acquisition quote. We've seen a massive acceleration of digital transformation healthcare in particular nonetheless said when you think about the provider market digital tech is going to be the
Fresh update on "stock market" discussed on Mark Belling
"Aaron spits in there with her afternoon business report. Sox traded mixed today after U. S Federal health officials called for a pause in the rollout of Johnson and Johnson's Cove in 19 vaccine amid concerns over blood clots, and today, a key inflation report showed consumer prices rose at a faster pace than economists had expected. In March alone, Consumer prices climbed 0.6%, the largest monthly increase since August. 2012 higher inflation is a good sign for the economic recovery, but investors worry that sudden price spikes Will force the Federal Reserve to increase rates faster than expected, which could be bad news for the stock market. At the close, the Dow was down 66 points. The 33,679 the S and P is up 13 and the NASDAQ is up 146 points. I'm the cool Wall Investment group, The retirement specialist. I'm Erin spits ner. You know? I figured out what my job is. But before I tell you what my job is, I have to introduce the programs. You know what you're listening to. For those of you who think that you stumbled onto W P. M P, and you're listening to Joe Dorsey or some other dated reference to Joe ever work it W E M P seems to be those old guys all worked everywhere, didn't they? I don't know. He worked it okay. Why? And he was that.
Jack Ma's Ant Group to Restructure After Crackdown by China
"Of the country's tech giant and group will be restructured to become a financial holding company. Follows last year's sudden cancelation of its plans flotation on the stock market, Celia Hatton reports Last year Beijing dramatically halted and stock market listing, which was set to break global records. The government cited regulatory concerns about the firm. Although insiders also believe China's leaders felt threatened by ants out spoken founder Jack Ma. And now and is being overhauled and currently operates like a massive online payment and lending platform. But the authorities air compelling it to hold reserves, making it more like a traditional bank. Shares and Mr
Fresh update on "stock market" discussed on The Charlie Kirk Show
"Join us this start investment advisor. Did you know? In the last four years the market went up 74%. But the economy went down 50%. How can that be? How do you have a market going up in the economy going down? I thought you had to have a good economy for the stock market to go up. No more. Not with financial engineering. Not with quantitative easing. Not with stock buybacks. Hype. This is Phil Grandi. Think of what these Gangsters have been doing. They've been going out and they've been purchasing Treasuries to get interest rates down to zero. How do they do that? They Rent money, and they buy these treasures get interest rates down the zero. Then they loaned it to the CEOs of the companies at zero interest, and then they simply by their own shares. Oh, I forgot to tell you that when they put that money, you know those dollars in your pocket go down that. In fact, in the last five months, the dollar value in your pocket it's one of those pieces of paper went down 14%. This is nuts. That's why you need to join my gang. Find out more at Phil's gang dot com fills gang dot com..
Canadas housing bubble is hitting smaller and smaller communities
"Jordan heath rawlings. This is the big story. Mike moffitt is an economist and he is the senior director at these smart prosperity institute in ottawa. Hey mike hello. Maybe you could start with the basics for us. How do housing prices in canada right now. Compare with similar countries in the world or compare with even our recent past what we're seeing a house. Price boom across Developed countries so in canada depending on the market prices are up anywhere from five to forty percents We're seeing similar gains in the united states in western europe and is caused by a couple of things I we have a group of individuals calls her white collar professionals who are staying at home They haven't been taking vacations commuting and they are saving a lot of money and they're taking that money and using it to buy all sorts of things so we're seeing huge price increases in the stock market in bitcoin. Things like vintage guitars and hockey cards. So they're putting their money into that and many of them are buying houses. They're buying second homes as investment properties. Which is a boosting the price of those and then we couple that with globally low interest rates which allow people to to finance. The purchase of homes You than they. They would have been able to a year ago. It's just fueling this. Massive boom where again in markets all across canada and in particularly smaller markets like ingersoll and tilson burger markets. Like that. you know. We're we're seeing price increases of of forty percent or more.
Fresh update on "stock market" discussed on Denver Real Estate Investing Podcast
"If you want to do some lurk than something in the twenties with would be nice. The nice yet One thing. I kind of wanted to touch on lawn in something that you mentioned Whenever we were chatting last week before before this Podcast was You know a quote from stein and you know about compounding interest so talk a little bit about that and kind of just focusing on the long term and things along those lines for our listeners. This is one of my favorite quotes of all time an stein said that compounding interest is the eighth wonder of the world and the man who understands it collects it the man who doesn't understand it pays it yup. Yup so. I think that just kind of goes into you know looking at real estate. You know in a lot of different ways but understand that. It's a long term play. I mean you've been doing this for over twenty years now and you know he started from your comic book collection and you know now you seven office buildings among other things. So i'm very grateful. I've been in the right place at the right time. So if you want to pull this up liquid. Go to google this type. In compound annual growth calculator cager say seven worked workout so compound annual growth rates if you just click that and let's just put in art today values the hundred thousand bucks that we want to invest. And let's say they were make nine percent of year after tax in the stock market decline. That shows you the Do the calculate future value if you scroll up a little bit ago. Yeah so put your caja at nine and let's do it for fifteen years. Okay so if you have one hundred thousand bucks a day and you drop it in stock market after tax and fifteen years. You're going to three hundred sixty five thousand bucks not too bad now back right. Let's scroll let's put sixteen percent doing an easy rental. Nine hundred twenty at number looks a lot better to me. Let's put in twenty four. If you're actually going to flip it over twenty four months or so five matters a lot. How many interested it makes a difference. Yeah well we We're bump up against our stop here and we'll get appointments here in a few minutes Any final thoughts or tidbits unit. Give our listeners and audience out there before we had end. Yeah two things. If you're new to this i just get started. you know. i think it's easy to get analysis pry parral on this and build a gigantic spreadsheet. And just really make this difficult for yourself..
Volkswagen's Name Change Joke Didn't Land
"From brown and business wars daily on this monday april twelfth. Happy started the week. Everyone you know. Who's been having a tough april volkswagen matsue and as you may have that's mostly because they started the month with an april fools joke that fell flatter than a busted tire is started in the last days of march when the automaker quote accidentally unquote released a very serious sounding statement announcing that they'd be changing their name to volts wagon that's volts as in electricity. Now volkswagen's id for is the company's only electric model in the us market so far but the company is planning to build more and said that all future electric models would come emblazoned with their new name volts wagon now in eighty-three rolled company. Suddenly changing. Its moniker is suspicious right. But the name change announcement was so deadpan that it got picked up by the likes of cnbc. The bbc and the verge and all that publicity had an impact on the company's stocks. Volkswagen stock prices rose nearly five percent on the day the statement was released the ap reported but only hours later. A company spokesman confirmed that the name change was an early april. Fool's joke a joke. I should say that didn't quite land sea. Volkswagen isn't exactly held up as a model of corporate transparency. You may remember that in two thousand fifteen. The company installed deceptive software in its vehicles to cheat on government emissions tests that move launched a five-year fiasco. That cost volkswagen thirty. Five billion dollars led to the recall of millions of vehicles so volkswagen's been trying to dust off. Its image since then which makes this joke. Well puzzling to say the least and the us securities and exchange commission doesn't seem to have that much of a sense of humor. Manipulating the stock market is of course illegal. An even though it's not certain that manipulation was the intent behind volkswagen statement. The joke certainly swelled stock prices which could bring regulators knocking. But there's another automaker who's been there done that and is thriving that would be tesla which has in the past straight up to see the public in two thousand eighteen founder elon. Musk tweeted that. He had the funding to take tesla. Private stock prices surged ten percent. But it was later revealed that actually there was no such funding. Musket has company each over twenty million dollars in penalties to the sec. But today it seems like things are working out for tesla their social media the spotlight and their electric models are in last month. Wall street journal columnist dan. Neil took volkswagen the new. Id four for a spin and said tesla has nothing to worry about the id. Four is five years behind the comparable tesla you'll wrote and the engineering betrays a premature rush to market harsh words for volkswagen. Which of course has been angling of late to compete directly with tesla. Both automakers plan to open new european factories for their electric vehicles and volkswagen group
Reconstruction: Australia after COVID
"Australia's economic recovery in the wake of the pandemic. Well we all know. Australia has weathered the pandemic bit of the most nations. It's been five months since the last reported virus related death and several months since any serious community transmission. It's quite extraordinary. Isn't it in coming. Wakes the most vulnerable. Australians will have been vaccinated on april. Nineteen this news. This week there will be reopening of the trans tasman travel route although they remind risks and uncertainties it's fate aside that the pandemic is pretty much forced drawings. But what does all this main for the economy. John edwards is a senior fellow of the lowy institute and a former member of the board. His new book is called reconstruction australia covered. It's published by the low institute. Get i john. Welcome back to the shy unpleasant to be on for the past year. We've been told we face the most terrifying economic conditions for generations yet australia. You think about it. The unemployment rights less than six percent the stock market is within a few percent of its high level and according to the imf this week international monetary fund australia is poised to grow at its fastest pace in twenty two years. It's four point five percent this year. Indeed we are among the world's standout performance in the recovery from last year's covid recession john. What accounts for our economic resilience. Well first of all. I think we handle the health trip. Caught will lettuce. We responded promptly. We put in social distancing. We prepared our health system for a bigger emergency than one. We presumably and australians will comply with the health guam. So that's that's important that we we contained the pandemic tilting but on the economic side. I think we also risk owner will be response in monetary policy the reserve bank and a very big response from fiscal policy treasurer and the morrison government.
Coinbase Posts Record $1.8 Billion in Revenue
"Promised coin base has reported its quarterly earnings ahead of next week's direct listing on the stock market. And the t. l. d. r. Is they have a great business. I mean they have a great business quoting decrypt coin basic. It's one first. Quarter earnings on tuesday revealing that the crypto giant made a profit of between seven hundred and thirty million and eight hundred million dollars on revenue of approximately one point eight billion dollars. The results amounted to a blockbuster quarter for coin base eclipsing its performance for the entire previous year and quote. Let me repeat that last line. Their first quarter of this year was better than all of last year. Also let me point out those margins profit of eight hundred million dollars on one point. Eight billion in revenue that's amazing they had trading volume of three hundred and thirty five billion dollars. So there you go as long. As crypto is hot they can make bank easily and they have fifty six million users which is a lot but when you consider that they believe everyone will be into crypto someday. Clearly there's plenty of room for growth. They're not even at a hundred million users. Let me quote a tweet thread from roaming chef about these numbers quote. Those user numbers are larger than almost every global bank every payment gateway including square then mo etcetera every major stock trading platform including robin
Your Stock Market Snapshot for Tuesday, April 6, 2021
"Insurance, A lackluster day for US stocks with the index is holding to a narrow range and finish He never so slightly lower. The Dow Jones industrial Average East 97 points. The S and P 500 slipped four and the NASDAQ composite fell seven. Higher energy prices over the first quarter of the year. Have men good news for business at BP Theo oil, Titan says also that have seen signs the industry is set for a rebound after last year's pandemic induced losses. Today. BP shares jumped
"stock market" Discussed on Stock Market Options Trading
"And your probability of prophet. Selling homeowner's insurance policy is quite high right but you don't expect katina to come through katrina consumer. It destroys entire cities. And you're stuck as the insurer and you have to pay that i am and that's what it reminds me of with these Ten delta's right in five delta's and with with a five delta. You're gonna win ninety five percent of the time maybe ninety eight percent of the time. It's going to expire out of the money. But those times that doesn't expire out of the money is gonna wipe you out like a storm. Surge is just yeah the give back. Give back israel on those For for sure So you know. I know we. You know we've been talking about back testing and you know what we're going to be doing over the next few weeks from the from the posting of this is in the stock market options trading dot net community..
"stock market" Discussed on Stock Market Options Trading
"Now it's like you know like i just see myself almost and i say almost 'cause i always traced other things but a big chunk of my trading. I'd feel like it's just going to be as px because partly because there's so many Expirations but what do you think about you know. Trading s as premier primary vehicle. I guess is where i'm from headed. Yeah so tasty trade on those guys they talk about all these different options and you go on the facebook groups and you hear all these different traders all of their different underlying tickers trading and Yeah that's that's where. I was for a long time. And you have all kinds of problems with those you have earnings reports and you have dividends and you have all these weird things that happened. A car company can't get microchip that it needs to build their car and at tanks and then my mom we recently had kind of a technology correction but meanwhile banking was going up. Up up in technology is going down down down and you look at the smp. And it's like. I don't get it all the stuff that i'm holding is going down. How is going up and it'd be popular technology stocks. That are that are taking a hit. Yeah i was gonna say. I think ultimately like you have to have some sort of underlying opinion of the stock that you're trading and with individual stocks. There's so many variables like you mentioned earnings announcements various industries. The retail industry got killed during cova cruise ships. And things like that. It's like some of those things you just can't can't really predict. And and when something's going down or going up too fast selling options in a contrarian manner can you know can be difficult so and i do a lot of strangles so you know. It's easy to be wrong. It could go way down or go way up and and you get you get burned. Just as much either way i in and i do a lot of calendar spreads as well and it doesn't matter if it goes up or down. I ended up and up in trouble. So i guess it's important to realize that with a lot of these underlines a lot of these companies they they just do things that you you don't expect now it's not to say that. Spx doesn't do things you don't expect it but but the truth is if you look at it you can draw these big giant Trend blocks on spf. It's just kind of a straight line. Just kinda goes up forever and you can't say that about a company a company might have might go down for five years and it might go up for eight years. And then i guess. Spx does that you but but you know the macro trend is just up up. Don't fight the fed rate. Yeah so we got the fed on our bags. So that's good. Because i know i know we We ended up trading a lot of net sellers of puts and spreads and things put spreads and sure that the spy there was the first co vid. Jobs report right. I'm like the the economy. Jobs are a disaster now. They this jobs report is going to drive. The market down. Short of the spy in the fed comes out and makes an announcement in in spy went up in the worst jobs. Report in modern history in the stock market. Went up that day crazy..
"stock market" Discussed on Stock Market Options Trading
"Had gone back to college and we had a he. I learnt dawson fifth grade fifth sixth grade and i felt like we were so i wanna say the word rich isn't the word but we were so lucky because i had two floppy drives to five quarters where i could actually do one thing and then copy it to the other one. Which at the time was a big deal because you would you would essentially either have to overwrite whatever it is you're doing or you lose it or whatever and i think that stuck with me for a long time so i have a lot of background. I was a math teacher for many years. And then I got into it. And i always comfortable in the command line. So i was doing cisco networking stuff for a long time. And so how did you get into Programming and computers. I guess that's something you started when you were younger. Like grade school. Or or what. I guess i was nine years old and my father bought me this radio shack. Trs eighty computer. And my brother. And i learned to code basic. We did some stupid little program some kaleidoscope programmes and yeah games kind of like oregon trail style in. Yeah so we started coding. When i was nine years old is when i learned my first language and you know eventually i went to school for i learned. I don't know. I must know twenty different programming languages. I program in vera log in c and c plus plus and Visual basic yeah. Pythons talked about a lot i had. We had a t nine hundred ninety nine. My grandfather worked for texas instruments so we got a computer. Is it a. ti eighty five. No it was a computer. And i might be saying the wrong and actually had cartridges and there was a couple of video games but you could also program to it and the way we would we would save air quoting here we would save our data was i had a tape recorder. Yup and you would hit record record. This facts like sound. Dial up modem sound and that was your recording of your of your code. Because you couldn't you couldn't record the disc mansell had different now isn't it. Yeah so yeah. I don't want to bore everybody with the history of our stuff. I'm sure there's a lot of people who understand why were saying. Well i i think the key takeaway here is that i've been in the market my whole life and i've been in technology my whole life right. I am an engineer. With a scientific degree in engineering and the takeaway is how could. I not merged the two together in by try to make a system that works a systematic methodology in the. And you know what it's like when you write a piece of software there. It's a step by step procedure. The computer does all of the things procedurally. And you want to apply that to your whole life. I want to apply that to my trading. And i've been.
"stock market" Discussed on Stock Market Options Trading
"Of the stock market options trading. Podcast my name is and in this episode. I had a discussion with lee spas. Yano lee is a data scientist and longtime trader and options trader. And we've been working on a project where we're trying to hack the options chain through back testing. Spx intraday options something. That's not available to retail traders. At least from what we've seen and we're looking at strategies such as zero e one and two d that's kind of our focus right now we're trying to take advantage of all the expirations. Spx has to offer. We can increase our frequency of high probability trading strategies in this episode. We're going to reveal some of the insight on what it takes to actually just do this type of research. The new research were doing is going to be available in mid april twenty twenty one so if you weeks from now from the time of this episode and it's going to be in the community at stock market options trading dot net. You can get a free account there if you want to get started now after listening to the episode shirt. Stop by the community. Where leeann i are going to be hanging out in the community and you can ask questions if you go to the podcast section. You'll see the podcast there and you'll be able to ask questions and we can kind of continue the conversation about what we discussed in today's episode again. That's over its stock. Market trading dot net. All right. let's get into my discussion with lee. Spas are so here with lee. Spas yano welcome to the podcast. We've been working a lot together on some. Spx back testing before we get into all that the league. Gimme a little bit of your history about trading how you got into trading and maybe some of your influences about how you kinda ended up in the in the options world. Sure sure well. Thanks for having me on eric. I wanted to show you this giant stack of books. That i have here and i don't know how many are here at ten or twenty something like that and i've been trying to figure out how to hack the stock market industry for my entire life and let's see this book right. Here was the first one that i read. This is wade. Cook the wall street money machine in this book teaches you about trading options. I read it..
How Will Biden's Infrastructure Plan Stocks Affect the Stock Market?
"Reality headsets for the U. S. Army fell apart the board so because there's a story we can't get away from, And that is Joe Biden's 2.25 Trillion Infrastructure spending plan on a big focus of that is climate link Stocks. Look at the Raymond James No out about 630 Billion of the 2.25 Trillion is all climate related and big part. That's a TV story. No wonder then that we saw Tesler up 5%. Of course, you just said end of the call. What a year. Today test is one of the laggards so far, but it's clawed back some of those losses in a single day, some other movies in the evil space there for about the boards because a big part of that plan is 500,000 public charging stations throughout the U. S So again, no wonder look at the performance on the day by some of the biggest names of publicly traded charging companies charge point up almost 19%. There is a broader energy story to this Joe Biden wanting to double down on renewable sources of energy, but also energy story, too. If we flip up the board One more time. You can see that the love was felt throughout those publicly traded providers of renewable energy alternative energy storage systems. One final area when I look at if we flip up the boards for a final time is $100 billion committed to spent being spent on Rural broadband, basically giving people access to Internet. This is something Emily you've discussed in the show a lot there in society. A lot of the disparity is caused by lack of training and lack of access to Internet and you can see actually, what's interesting. A lot of the telecoms provider is not that much higher T Mobile hired by 5/10 of 1%, There is a five G angle. This is well on T Mobile's been a surprise leader. The five G's space. But why's on Joe Biden and how he's going to spend that big
As NCAA president flails, whispers of an exodus get louder
"Seems like mark. Emery is always in the news. We talked to pete thamel about him. A couple of days ago and since then pitas written Even more talking about whether the winds of change are not already in the thanks for the time. Let's let's talk about your latest on. When i was i was dumbfounded when i read your column because i swear. I rent a comment the other day. Some poo bear in the ncwa hierarchy. That said he was doing a good job and they were happy with him. Well hey it was interesting. Paul like he. There's a little bit like i know. I caught in the stock market. When when when the stocks keep going up they call it the goldilocks effect in in college. Athletics when someone who is perhaps not performing their job at a high level but still gets to keep their job is a similar thing. We're just all the all the factors surrounding them are in place so they can keep on going even if the results aren't there and we we saw you know most recently with larry scott out in the pac twelve where it was fairly unanimous Feeling amongst athletic director certainly in a lot of people out there that maybe it was time for larry to move on and he had a couple of key presidents especially the gentleman at arizona state and they make a crow who were were on his. We're on his side and he kept the job probably three or four years longer than maybe even more than that than than most people in that area would Would have thought he was going to in so the Mark emirate is that he is pretty much lost his constituency on the ground meaning he has lost the commissioners for shore at multiple commissioners going to estimate that least eighty five percent of them would like to see a change in the president's spot athletic directors. A little harder to judge. 'cause you're you're going from university of maine to miami and alabama you know eastern washington. There's three hundred and something in division one and there's d tuned. three as well But it's probably a fair estimate to say eighty five percent there want change as well. I mean let's put it this way for all the stuff that's come out about mark emmer. His anybody stepped up to defend him. I don. I don't think there's i have not heard or seen a you know a single person other than his bosses.
Deliveroo Shares Plunge 30% in London Debut
"Of the london-based food delivery giant have plunged as much as thirty percent. In the city's biggest stock market debut and more than a decade amazon delivery began trading at the low end of its expected range at just over five dollars and thirty cents a share but in the first half hour of trade shares were temporarily halted to calm volatility. The company's chief executive said the goal of the listing is to build a definitive online food company but investors have concerns about the way it operates.
Stock Market More Volatile Amid Concerns About Inflation
"Finished at a record high yesterday, by the way, once again fact, let me give you that number. We're now at 1 33,071 on the Dow this morning, however, for edging lower inflation seems to be the watchword tech shares or are coming under pressure because Treasury yields are renewed rise when I say Treasury yields, That means bond prices are up. People flood the bonds. We didn't get a better return. They come out of stock take their money out of stocks but over the bonds. We all remember the only thing making stocks or bonds go up or down is more buying than selling. So for selling stocks to buy bonds, that means stock's gonna go down. That's what's happening this morning. A lot of volatility right now again tied to concerns about inflation. We have a market based inflation concern because there is a $3 trillion spending planets could be announced tomorrow by Joe Biden. It's about rebuilding the country's infrastructure that makes Mark. It's a little bit nervous. We start spending more money like that, especially on top of the stimulus, and the market's been little stalled out. So I think we're gonna be sort of in a wait and see mode here for a couple of days right now douse even from yesterday 33,000 ish where we set where we stop with the record yesterday s and P down 10 at 39 48 right now on NASDAQ, climbing out of a bigger whole, they had earlier doubt NASDAQ was down about 1% earlier. Now we're down about half a percent, So it seems to be going better than we anticipated. 8 12,073,
Stock-market futures holding gains after February drop in durable-goods orders
"Suck Futures air sort of holding onto gains this morning. We're looking pretty good after the February drop in durable goods orders. That was one more sign that the economy pulled back last month. Well, remember last month we had the Big Texas Freeze s Oh, we saw a number of things We saw. 10 year Treasuries. Click up. We also saw the number of us new applications for unemployment. Click up. We also saw retailers fall. This all has to do with two things. We had a bigger lockdown for for a time. There then we also have this Texas freeze out which was causing an issue so but markets are shaking off this morning. We had kind of a rough day yesterday. By the way, Dad does, as I guess and pee all down close to her percent. But now all of that bloodletting seems to be
Fed’s Corporate Bond Buying Foresaw a Year of Covid Pain
"A year ago. The twenty third of march twenty twenty early. On as you're know in the days of this pandemic when maybe not all of us understood how much trouble we were gonna be in public health wise mental health wise certainly and economic health wise as well and we begin today of last year because we marked two milestones on this tuesday first of all the stock market low of the pandemic. It's been basically straight up since then. I know not the economy. Thank you we offer that. Just as a marker also a year ago today the federal reserve said it was going to step in and start buying up corporate bonds. That was and is a big deal. The fed getting into corporate dead didn't because the market for that debt just frozen and the fed was helping those companies borrow at lower rates which can be conducive to business and borrow they did. Corporate debt had records in twenty twenty but with rising interest news of late. As we've been telling you corporate debts been getting a little bit more expensive. Marketplace's justin ho gets us gone. Investors think about corporate bonds. Kind of like how they think about government bonds. If you're going to lock up my money for years you better pay me enough interest to make it worth my while. They want to be earning a rate of return that is higher than expected inflation. That's winnie caesar. at wellsfargo. She says many investors expect inflation to pick up this year. People are likely to spend more and that spending good drive up prices not just for regular consumers but for companies to it could be that accompanies cost of labor is increasing. It could be that. A company's cost of just raw materials and commodities is increasing. Those expectations are causing. Corporate bond yields to rise. But they're also signs of an improving economy says kathy jones chief fixed income strategist at charles schwab. Which underwrites this program. Jones says corporate borrowing costs are historically low and even though they're currently rising that shouldn't be an impediment to them investing and continuing to grow the business. The concern says stephen davidov salomon uc. Berkeley is if rates continue to grow into next year or the following if rates get too high. He says companies won't be able to borrow as much to a fun. Projects investment will slow because investment becomes more costly fed chair. J. paul said today although he expects prices to creep up this year he doesn't think that will have a big or lasting impact on overall inflation.
Are Markets Complacent on COVID-19?
"This is spring break in south florida. People packing the streets things getting so out of hand. Miami beach declaring a state of emergency enforcing curfews and restrictions to limit the partying and crowds. All this as cova cases are back on the rise in more than half of the country. Twenty seven states reporting a jump in new case counts new jersey causing any further reopenings and over in europe. Germany and england extending their lockdowns poland parts of france other european countries are introducing new measures to curb the outbreak. So the question tonight is the market ignoring covid risks. Taking its eye off the ball. Just plano getting too bullish guy. What do you say obviously hailed the we everything through the prism of the market right. So i it's important. Make it clear that we don't want to see anybody getting sick. We understand what's happened over the last few. I think it's important to say that people can slice and dice. These are comments however they want with that said in a perverse way. I think this actually might be bullish for the market. Why because maybe it will slow down the move in bond yields maybe people will reinforce your belief that the fed is going to be there regardless and by the way we've been through this before in the markets learn how to deal with it so of all the things that i'm concerned about in the market and they're many this isn't at the top of my list and it clearly isn't it. The market's either being that the vix closed below nineteen today for the first time in probably thirteen months. Yeah timmy brought up the vix beam below twenty earlier on a call today. Why just extraordinary so a year ago. And we're going to do all these look backs and we're gonna have a great segment on what you'd want to invest in a year later but you know the vix was seventy five a year ago today and guys bringing up great points about fear. His is inspired unprecedent policy response and so the fear of removing unprecedented policy responses. What had the market's having anxiety. What gives me anxiety is that you get to a place where the the the year of mulligans that we had which was then on twenty twenty and twenty twenty. One earnings is something that you're going to have to address by the time we get to mid year and i think we will have to unless you slow down the pace so everything guide caveated this. We care about the world's health a lot more that we care about the stock market. I do think you have a case here where the market is is going to be fine with bond yields coming down. Because there's there's more fear of less opening. And i think unfortunately that's just the market. We're in but again i. I am not worried about the environment if anything i do see seven percent. Gdp growth and a labor market. That's four and a half percent. Those are the feds numbers by the end of this year. That's going to be very very strong backdrop to me for stocks. Let's just hope. It's not too
Weekly Market Recap
"What moved markets this week the week ending friday march nineteenth twenty twenty one a week that was anchored by the fed interest rate decision and policy statement and ensuing press conference by chairman. Jerome powell the markets did not do very much earlier in the week in anticipation of this and originally greeted powell's statement loose monetary statements. I should say with bullishness with some buying occurring. After the fed meeting on wednesday afternoon that reversed on thursday as yields shot up and stock markets were sold off pretty dramatically in some instances. The nasdaq fell three percent on thursday. And today friday things are kind of shifting around a little bit. We had some selling earlier and they have since come in. Nasdaq is now up for the day. And we're looking at losses but not very big losses for the major indexes for this week so a big week especially when it comes to fed policy. Lot of commentary around that. And i'm looking forward to what my colleagues have to say about it. I will introduce them now. I am joined by sticking alpha editors brad olsen. Vp of news. Kim khanh senior news editor. Stephen alpher managing editor of breaking news. And i'm your host and moderator nathaniel e baker senior editor of strategic contributors kim. Let's start with you. What was your take on. The events of the week ultimate another volatile week and we've had to deal with You know stocks kind of being dragged around by yields again. But i think it's also maybe seemed worse than it was because of thursday's sharp selloff. But now we've got nasdaq. Maybe looking at if it goes down for the week before out of last five that it's been lower but it's got it's started to gain some traction today as we were talking. Could actually you know. Maybe we gained more traction pull out a win just barely for the week. I think inflation has been on. Everyone's mind and not whether or not there is inflation. Think pretty much people are green. But there is if you looked at The philly fed that was out this week The prices paid index jumped to the highest level. It's ever been it's been since march one thousand nine hundred eighty though. There's definitely i mean. The prices received also spike sharply. So there's definitely inflation being seen this inflation in the pipeline data on now. The question is whether it's good or bad inflation and a lot of times you know. Everyone's like okay rates are out in. The market's gonna sell off but you've had good years where rates have been going going up a bit because of growth in. The market's gone along with it so there's been a i think a lot of debate about that and also we're kind of seeing maybe some more evidence of rotation which is not necessarily rate striven just people just still taking are looking at growth and looking for these reopening stocks cyclical stocks and Selling some of the bigger tech names to buy those stocks. And that's going to have an outsized impact on the indexes. Yeah and i guess. The question is also whether the inflation that we're seeing is transitory to bar the feds term which basically apparently means they can just ignore it. Or if it's something a little bit more permanent which might get them to start tapering brad. What's your take. Who are the winners and losers. Definitely this week was a cyclical rally. You saw airlines takeoff literally Partially on the tsa data that we saw travelers start to move around the country. A little bit more aggressively young american airlines alaska air united airlines all up about double digits. Interestingly enough the thing. Sanford bernstein even called out some of the value names or more traditionally cyclical names as screening or momentum. So that's one of the first time i've ever happened or as happens in two thousand sixteen where the value names are now technically momentum names of this upswell of of equity interests that we've seen over the past couple weeks really pick up steam and so that that that involves autos materials energy etc over the past few weeks. Although this week energy was clearly a loser on that steep drop off that we saw an oil the admit marathon oil achy. Wheelock smell the trillium. They took it on the chin Crude i think it had its worst day since september Earlier this week so outside of the energy names. They're the sickles. Were still a big winner. Obviously i think you've powell tried to assuage your concerns about how aggressive the fed was going to be I think just he just issued another editorial earlier today discussing you know trying to reassure the markets. Hey the dove even though quite a few of the members did express an interest in in raising rates before twenty twenty three a still a minority of them obviously
"stock market" Discussed on Stock Market Options Trading
"Not trying to sell people on anything i wanted to personally invite you to join the new network which operates kind like a facebook. But it's free from all that distraction you're not gonna we're not gonna have all the spam that facebook inherently has with all the fake accounts and bots and all these things but more importantly the purpose of the group is this we're bringing together stock options traders to create consistent profits in the stock market. So that we can achieve financial freedom and create a lifelong income. That's the goal. And that's what we're focused on. And i think that if everyone he joins the group can focus on that goal then we can have respectful debates around strategies because we all are on the same page. And what we're trying to do. We're not trying to prove to each other. Which one is better. Or who's a better trader. Were all trying to achieve this and understand. That goal may look a little bit different for each of you. So for a listener of this podcast. This is also going to be a way for you. Discuss some of the episodes that we put on here. I know that. I get a lot of questions and email about that. But wouldn't it be cool that after an episode you listen to an episode and you have some questions that you could go to the community and find the episode in the podcast section and comment and ask questions for example The last couple episodes. I featured david son who's a fellow. Spx trader and david is in the network and he is willing to answer questions. He's willing to clarify some of the things that were on the podcasts of. Maybe maybe we didn't get to something. Or maybe i interrupted him. I'm you know. I know i'm kind of known for that a little bit. But the point is by having a community related to the podcast. We're gonna be able to share information clarify questions. And i think that's going to be more helpful than something like facebook and in a facebook group. So if you're a real person who.
"stock market" Discussed on Stock Market Options Trading
"My name. Is eric in this episode. I've got something. I'm really excited about to share with you today and i want to talk through some of the things that got me to this point really so i i wanna talk about facebook groups. You're probably in a few facebook groups. There's various trading groups out there and i'm hoping and assuming that you can probably relate to some of the things i'm about to kind of talk about so i i run a facebook. Group has got over seven thousand members in it I'm a member of a few different groups and you would think that having seven thousand people in a common group who are all there to talk about options or stocks or whatever it is you think this would be pretty helpful but over the past couple of years. I've come to the conclusion that not only. Is this not helpful that it actually can hurt you in and let me explain why so. First of all. Despite many kind of safeguards and questions and things that i've tried to put in place for my group they're still spammers and scammers that that are able to get into the group and you know that they're ultimately trying to sell you something on the back in they're constantly trying to convince you that their system or their group or some other telegram or discord or any other these group areas it would be beneficial for you to go join them or learn their method and all these things and what that really does distract you from whatever path. You're on so if you're talking about options and the there's a million ways to trade options and i've got a few that worked for me but there's other ways to so there's a lot of people trying to convince you that their way is best and that's not actually what's best for you for where you're at on your journey or your educational so You know these people are going to try to get you into another group of theirs. And it can be about options or crypto or. They're going to detract from your current educational path in. I don't think that's very helpful. And it just delays you getting to being profitable or consistent or whatever the goal is so besides the the spammers in the group that have something to sell you or convince you. there's other traders are just in there to criticize people and and kind of a disrespectful way might post an idea. And i'm sure you've seen this before where there's just a couple of people that jump in there and they start ripping the idea part because maybe they don't understand it or maybe didn't work for them. They're going to give their opinion. And ultimately you know this type of discussion or whatever you wanna call. It can cause a lot of doubt. There can be conflicting. Information can be confusing to someone especially if you're newer or trying to learn or maybe just picked up a book and you're starting at a different point than some of these people It can be confusing and distracting if you will and don't get me wrong. I'm all about a respectful debate about different strategies And methods and things but a lot of times these things turn disrespectful and ultimately i get back to. I don't know that this is helping that many people at least for you know having seven thousand people in group I just don't know i'll help. How helpful this is. There are very good traders in there that are trying to help..
Stock-market futures little changed after U.S. housing-starts data
"Fell 10.3% in February. Building capacity building permits dropped nearly 10.8% in February. As well. So it's um disappointing numbers in the housing market this morning. Stock futures are little changed after the US housing A data was out this morning, with Dow futures up just a fraction this morning, but NASDAQ futures off earlier percent. Yes. And P Futures are down nearly a third this morning. Course. We're also
New Record Highs as Powell Reassures the Market
"Does the market finally. Believe jay powell. Now if you watch us yesterday we asked why no one seems to believe the fed chief when he says rate hikes aren't coming anytime soon but today he couldn't have been clearer powell saying the fed isn't even thinking about thinking about hiking rates until twenty twenty four at the earliest and when they do finally move the market will have ample warning his comments. Reigniting the record rally with the dow. Snp closing at all time high. So does this mean really say it all all right just to reiterate. This is obviously the deepfake. Does it meaning ring. True guy a love. The mimi's shifts are my favorite. And i i guess the answer going back to last night it depends on what market you're talking about. The stock market absolutely believes him. And you know i. I'm somewhat hesitant to say it. But that's something you know. Tim and karen and steven been saying for a long time. Don't fight these guys in the stock market continues on. Its merry way the flip side of that coin. Is you know. Ten year yields are an indication. The bond market doesn't believe him because here we are at north of one point six percent and the ten year so one market does. The other market doesn't right now the. Us equity market is winning and for the purposes of that. Show our show tonight. That's probably good enough at the same time when race. Get high enough tim. We've seen it in the past when they touch six six seven which they did this morning when they go towards one seven The markets have a little bit of a tantrum so even though the bond market may not believe jay powell eventually the stock market's take the lead to the bond market. So the two are back intertwined. So what what do you think the answer at this. Point is jay powell making abundantly clear and clear to the markets market participants. That there is no intention on raising rates until not even forecasted economic metrics come true but they actually have to see it in the present very backward looking very subjective. We've been. Rick rolled twice this week on fast money. So there's a lot going on. And i think you have a case here where also the concept of the the absolute level of of bond yields on the ten year. What point are are equities in trouble. And i think that's maybe a bigger debate on some level because we just don't know i think the conversation that The fed may have lost control of the long end of the curve. Is the right one to have I think from from fed funds obviously out to five or six years. It's pretty clear that Today's action tells you that the fed is able to job. Here's something else about today. People aren't really talking about. They're out there saying they're going to continue to buy at least eighty billion treasuries and forty billion mortgage backs. At least so again the size of the bond tapering Is something that's also really tough to understand especially when the fed really upgraded the economy Tells you that four and a half percent unemployment rate by the end of twenty twenty one From not terribly far off the record lows that we you know of all time that we went into the pandemic with his still not good. Enough so let. The fed was very clear today. I'm most troubled by vicks. That's got a one thousand nine handle honestly fell eight percent and the volatility. This low tells me equities actually should be a little bit weary in the next couple of days. We're pre pandemic levels when it comes to the vix karen on what did you make it today and does it. Change your view on the markets. Well i'm always long. But i just have this image of of j. palace saying you know what i've taken the bull market hostage. I'm not gonna hurt the bull market in the bond market yelling electable market. Go and then. Powell says if anybody makes a sudden move the market dies and i think that's sort of a standoff that he's trying to reach with the bond market right we saw briefly would happen last month in a lot of weird things the mark you got a lot of sudden movements and the stock market really didn't like that at all but you know tiven guy said he couldn't have been more clear about how dovish he is now. I don't know if the data will force him to do something earlier he did. Say we're not gonna do it until the data makes us do it but if we start to see data change well then we'll have to think all right. He could be made to do it sooner. i don't really know i don't. It wasn't so shocking to me that the general rhetoric. I don't think it was so shocking to anyone but good for banks good for. I guess it was no giants surprise. More dovish than i thought but certainly we all thought that he was dovish going in. I had actually. I want to hear what he has to say about the supplemental leverage ratio. that's important for banks but he punted on that and rice and a couple of days. What he has to say about that is he. Did you say yeah twice. They've made it very clear he wasn't gonna say anything they're gonna say something in a couple of weeks and he's not gonna say anything about it anytime
The Guy Who Did Everything Wrong But Still Figured it Out with David Pere
"Paret welcome to the bigger pockets. Money podcasts. I i talk to you today. Thanks for having me on the show. Mindy scott always a pleasure. Yeah we it's always a pleasure for scott and you're just for being on the show that was that was like a comma scott calm like always a pleasure for both of you. Okay okay probably a bad use of commas. I'm big fan of the comma. Anyway david paret is a career marine corps officer and heat. I learned about the term fire from our very own got trenched and brandon turner some schmuck who hosts another one of our podcast for bigger pockets and he learned about it in the most five way. Possible on a hike in hawaii. Why were you in hawaii david. I was stationed out there. Okay okay so. I was there for business business. Let's do some air quotes around that business although as ceo. I guess it's really convenient to go out to talk to brandon hop on clay instead of just hopping on zoom. Anyway david paret. Where does your journey with money. Begin first off for those listening. I have to correct you. I listed i am. I am not fancy and i actually say that with a badge of honor because i think that actually makes for anyone listening to this who's military that actually makes this way more Powerful because. I'm just an enlisted schmuck. So everyone thank you for correcting me. Please germany correct me. I really wanna try learning all of this military suffered. I'm just wrong all the time so sorry about that. Are you an enlisted officer or just Just an enlisted marine. He's an enlisted marine. Okay now tell us your money story. Are you on board with us using the term semper fi to describe your journey absolutely. That's an accurate statement or disrespectful to the phrase semper fi. No no it's motto. It means always faithful. So oh okay. Tell somebody already david. My money story starts off in all those same places that most service members do terrible right. I joined the marine corps in two thousand and eight. I had super frugal parents. Who did all the right things. Even to envelope budgeting. They taught me all the things you're supposed to do. Bought the off brand stuff to save money. And then i joined the marine corps. It was my first real salary. I went to japan. And i was like. Oh my god. I got money and i blew it on everything i went to a on even went on a deployment tax exempt pay. I came home with seventeen thousand dollars. And i bought a truck a rifles and tattoos a bunch of alcohol and probably took some people out on dates and have nothing to show for any of so. I did Terrible things you know by the time i was. I would have been two thousand thirteen to fourteen. When i i mean i probably had an a negative net worth and somebody handed me the book. Rich dad poor dad because they were trying to get me into Amway ride in helped me sell stuff on the side. And i remember telling the guy like no joke i was just like i don't read like you know like i'm a marine. We don't read books which is not entirely true but And he pulled a cd like out of his pocket and was like wow. I've got a cd. And i know you drive a lot on recruiting duty. So plug this in. And listen to it and i listened to it originally with the intent of like well. He called my bluff final. I'll listen to the stupid book. And then within three months. I had bought a duplex and things just started. Roll like i. I listened to that book i like. Oh wow this is cool. I downloaded audible. Listen to a couple other purple library books and then i was googling. Every time i didn't understand they just go to google. And then i stumbled upon bigger pockets and then the book on rental property investing in the book on no and low money down and then like right in the same timeframe someone got really drunk and parked on top of my harley and so they totalled my harley but they didn't want to he owned a car dealership so he didn't want he didn't wanted on insurance so he just paid me cash and then i took it to the viewership and they paid me for it and so i basically got the original price. I'd put into this bike at the same time. Like looking for a duplex and use an fha loan bought a duplex lived in one half rented the other half and then things just kind of scaled from there. So at this point. You're sitting there. And you're just becoming aware of wealth-building concept in general and it doesn't two thousand fourteen. You have basically no wealthier debt at all at that point. Yes so i guess. By the time. I read this book. It was actually probably october of two thousand fifteen. I had a little bit of debt. I mean maybe maybe a few thousand in credit card debt in an auto loan. But i didn't have. I probably didn't have a thousand dollars in the checking account so i only had you know i probably only had like a negative three or four thousand five thousand dollars net worth so. It wasn't like terrible but it was definitely nothing to show for it at all. But you were contributing to your tsp right a little bit. I had done the minimum like eight to ten percent. But what i had done. And this is the There's there's different funds right. When i first joined your money went into the fund which is government backed securities which is in perspective. I've been putting eight to ten percent. Mit because someone told me to. But between two thousand eight and two thousand fifteen. I left it in a fund that essentially earned two. Maybe three percent interest never lost money but it earned two percent interest while the rest of the stock market was earning twenty thirty percent returns coming out of the two thousand and eight recession and i just ate it so i could have way more money in their if i just know where to put it or what more money in. So it wasn't until two thousand fifteen that i really cranked up and started putting twenty thirty Last year sixty percent at one point in my in my thrift savings plan. Okay so this was not a meaningful part of your position at the time when this all started right now i probably had five grand. Dsp ray how much cash did you have at the time as well. If i hadn't totalled my or had my harley totaled basically none. I was pretty much living paycheck to paycheck. How does a harley jump. Start one's cash position. I i don't really. I don't have a perspective on. This is a motorcycle worth eight. Grand is it worth fifteen twenty. Twenty-five i i have no clue. No no no not that much. I probably got probably like eighty five hundred out of totaling. It wasn't super expensive harley and it was a few years old i've probably got about eighty five hundred but i was living missouri which is super affordable and then i was able to use the fha loans. I got into this house for like four grant. I think it was thirty. Eight hundred bucks. So you're stationed in missouri and you buy a duplex and can you walk us through kind of how the housing allowance and all that kind of stuff works for those who are not familiar with military benefits just so we can get a a total picture of your position at this. Starting point. pleasant fifteen yeah. I i think in springfield. My housing allowance was like eight hundred and fifty dollars a month and the housing allowances tax exempt. So it's you don't pay any taxes but actually counts as a little bit more As far as debt to income goes towards your lender. I think it's like one point two five times. Whatever your housing allowance cost when you go to buy. But at the time i was living in an apartment and there's like five fifty a month for a two bed one bath apartment and my lease was coming up on and do so. I was able to get into this place. I bought the duplex for eighty. One thousand my mortgage was six fifteen and there was attended one side for four seventy five Market rent was like five fifty. So i was like okay. Well this could. this could work nothing else. I'm going to be paying one hundred and whatever that math is one hundred forty dollars a month out of pocket for the mortgage as opposed to the five fifty. I was paying on rent. And i probably should've used the. Va loan on that but nobody knows anything about the va. Loan and the lender actually told me not to because he told me quote unquote you can only use it once which is wrong air so much confusion around the va loan. I hope that somebody someday we'll sit down with a really great lender and talk all about the. Va loan and if they have already it would be awesome to link to that in the show notes because the va loan is only applicable to who service members veterans Some federal employees but generally just service members and veterans. Okay so that's not necessarily all of our audience. But i think it's really important to note that you can use it more than once you can use it a lot more than once. You can use it as many times as you want. There's some stipulations there. Because you have to renew the eligibility and after two or three times it gets kind of kind of convoluted but you can the first time you can use it. There's no limit on it anymore. So you can go and buy. There's a guy. I don't wanna knock on wood right now. There's a guy under contract on a triplex for one point. Six million dollars in the bay area right now that we're we're helping and he's going to basically move into this thing zero down and he's high income earner out of the military veteran and in the medical field so he's got a good day but he's gonna pay zero down get like two and a quarter two and a half percent interest on this thing and his tenants are essentially going to pay the mortgage and then he's going to be on the hook for maintenance repairs.
"stock market" Discussed on Stock Market Options Trading
"The s&p is down five percent this year then you know these other funds just hope to be down only four percent. We don't want that. We want to make money every year. So if you believe that caches a position that you should only put your money into a position in the market where you understand what the trade is. You've seen the the research it's been tested all that type of stuff you're gonna do better off and it's kinda boring sometimes where you know you might be sitting in a big. Let's say happy or count. Maybe in cash and half of its working in. You may start to think that. Well you know i could be making more. Had i put all my money in there but we like this. You know. I like to save some of that money for the other assets that could start to perk up so for example if you're in stocks and various forms and then all of a sudden volatility in bonds. Start to perk up. And you don't have any cash you're not going to be able to deploy that you're gonna have to get out of your stocks and then deploy cash and at that point it can be too late so i like to have cash in my account all the time. I don't have a set percentage. It's something i'm kind of working on. But what i do. Try to do as allocate a certain amount of cash to surge strategies that. And we'll talk about this here in a minute so that way. If let's say i'm allocating a certain amount of cash to bonds. Well if we go an entire year were bonds aren't worth trading did. I'm just going to have that cash in my count and it's not going to be used right so that's something that that you know. That's my take on that. And how i look at cash is just waiting to be deployed to a proven high probability profit strategy. So the second thing is we're gonna trade these asset classes only to the long side. There's no shining trades if you will everything's going to be buying were buying shares of something or we're trading options to the bull side. That could be bull call spreads. It could be bull. Put spreads but every trade in the core portfolio is a long trade. Now technically even though you're going long if you go long volatility or long bonds or long gold when these things start to get bullish a lot of times. That's when the stock market is pulling back so as long as you're trading long volatility typically for the. You know most of the time that means that you're long stock. Portfolio stock side of things is going to be pulling back so the general idea here that we're only trading to the long side of the different asset classes and in theory money's gonna move around money could come out of stocks and go into bonds or gold or bitcoin so again we're going to be training everything to the long side. There is one exception. And i'm not gonna focus on that in in this episode but there is a short volatility Strategy a couple strategies that that we look to trade But there tend to be a smaller part of the portfolio and it's we trade them separately from the long volatility. But for the most part we're going to be trained everything to the long side so that means if you can buy and sell an etf then you're able to trade A lot of this. And if you're able to buy bull call spreads and sell bull put spreads then you'll be able to trade the option sides of of the house on that all right so let's get into it..
"stock market" Discussed on Stock Market Options Trading
"So one reason this trade is great for small accounts is that the cost of this trade is typically less than $200 a lot of times. It's about dollar fifty dollars Bounty. So over the past five years. This is a low-cost trade that you can get into the other reason. It's great is that with the right exit strategy that we're going to cover. Here's this trade made over six hundred percent return on that risk that you took over the past five years. So if you took if you bought one spread every time that the mark Addition and the setup was there. The return was over 600% based on the risk. And remember when you buying a debit spread or a bull call spread the risk is the amount that you pay for that spread. So if the spread costs a dollar fifty you're risking $150 will again this returned over six hundred percent on that risk over the past five years. So we'll talk the exit strategy and just a second but over the past five years there were just over 90 trades and it had a 75% win rate. The key though is in the exit. There are two exit criteria for this trade first, if the spread increases in value by 25% the trade was closed as an example. If the spread costs a dollar the trade was closed at the spread increased invite you to a dollar twenty-five. So if you if you buy $100 spread and you make $25, that's a 25% gain. So that's kind of our Target for this trade is a 25% gain for this month. TLT bull call spread. Now if the trade doesn't reach that 25% Target the the spread was closed after 15 20 days, which is about three weeks. So there's two things that this time based stop does and I'm kind of obsessed with this type of exit right now first by exiting the trade after 15 trading days. And again, that's about three weeks. Remember we're buying a spread that's about four weeks or 30 trading days to expiration. So we're buying it spread where the options expire and let's call it for weeks and but we're going to close this trade after three weeks if we don't reach that 25% profit Target, so if TLT rallies, let's say the the ETF goes in our favour that's sold strike is going to be in the money..
"stock market" Discussed on Stock Market Options Trading
"Fact, so. We're going to discuss trading options with a small account now in case you didn't know I also run a YouTube channel currently called vertical spread options trading but the name will be changing to offer stock market option trading soon. Either way. The reason I mention it here is because we're going to be talking about trading options with a small account and I just created a new video playlist on the channel for small trading accounts and I plan on expanding this video series for trading small accounts and to talk about specific options research just like the one we're going to talk about in this episode. So when you get a chance hit on over to the YouTube channel, check out the videos geared for small trading accounts, and I'm going to put a link in the description of the episode, but it also created a short link for you that my dog Easy to remember you can go to ww.w options trading help small and that'll take you directly to that small account stating series..
"stock market" Discussed on Stock Market Options Trading
"Forward slash index options and you can get started on that today I'm going to put. The Lincoln the description to or let's go and get into a couple of the main reasons why traders love trading index options and the number one reason this is for me is that it's cash settled and this is different from trading, and this is the difference between espy wine PX right to difference between trading the index option versus an ETF option it's cash settled and what does this mean exactly. So the reason why indexes are cash settled is because you can't trade the index itself for Spx. I'm an amicable spx wrote the vix. INDEX DJ ex. These are all indexes for you know the Russell two, thousand The vix index you can't buy and sell the VIX. Index just sort of an informational vehicle that that's you know showing the average or whatever of all the stocks in that particular index. SPX, right. You can trade options on them directly though which is what we're talking about today trading index options because you cannot buy or sell the index itself. So think about the the you know the idea of assignment, right? Well, if if you can't own SPX and you get assigned, well, what are they going to give you an the answer is nothing they can't give you. So what they do is they settled that difference in cash. So here's an example. So let's. Say You sold a call credit spread on Spx for example, and you're kind of in the money and everything expires. The short strike goes in the money and the long strike stays out of the money kind of expires between your strikes if you will. Well, in that scenario with S P Y, you would be assigned a hundred shares of s why not a big deal unless you have a small count and that would probably hurt but with index options, there is no assignment. Because it's cash settled, right so that's that's sort of the second thing right? There's there's no risk of assignment because it's catch settled and there's no risk of early assignment because no one can choose to exercise their option early. So this is the idea of American style options, which is more like S P Y, versus European style options which are traded like the indexes indexes are European style options. So the way they do that is once you let something expire in the money. They. Simply look at the trade and say, okay, well, you know, did you make one hundred dollars? Did you lose one hundred dollars whatever and the cash is settled mean they're going to put money into your account or you're going to get to keep the money that's already there or they're gonna you know you're gonNA lose money in that money's GonNa come out of your account. So it's pretty simple. They calculate the profit and loss and it is settled in cash right? So They never want to have to deal with. You know getting assigned and all that stuff the number two, which kind of mentioned already is the risk of early assignment and here's where this matters to me. So I trade a lot of short term options. Usually you know seven days..
"stock market" Discussed on Stock Market Options Trading
"Is Eric and today we're, GonNa talk about index options and how they differ just a little bit from stock options or even ETF options and basically why trade them so much you guys know I talk about spx allot right. But before we get started, you should know that everything in this episode and on this podcast for informational purposes only and should not be considered financial advice and real quick. If you already on my email list, you probably already know this been sending the emails but I put together a seven part video. Series for trading index options that I'm loosely calling an index occasions many course but I did something a little bit different with this course if you want to call it that instead of making everything from scratch I, mean there's already a lot of great educational content out there. So instead of me sort of redoing it all myself, what I did was I looked on youtube and I found what I think are some of the best educational videos and I put them together in a way that will start you from zero and get you up. To speed on trading index with a real full strategy in one week, I know sounds crazy right and if you would like the index options mini course, here's how it's going to work. After listening to this show head on over to options trading dot help forward slash index options all one word options trading dot help Ford Slash index options that's options trading dot help Ford Slash index options. So when you go there, there's going to be a form and you can put in your name and email and I'm GonNa Send You the index options Mini course and it's totally free and I'm GONNA send you one email per day for about a week. I got seven right now I'm actually going to add I may add another email or two with a couple other things but right now it's seven parts. I'M GONNA send you one email day for about a week and each email contains what I think is some of the best videos explaining various option concepts geared towards making consistent money trading index options, and again, most of these videos aren't even the ones that I made there just various. Various. Other Youtube channels you're going to recognize some of them right but they really are some of the best videos and you know I'm just not going to try to compete with these guys. You know they they have a great marketing team or whatever. So, at the end of the one week mini course, I've added an updated weekly option strategy for Spx that you should be able to trade on your own after you're done watching the entire series so that research video is not on Youtube. You can only get it if you take this course. So if you're interested in trading weekly options on Spx with updated research, go ahead and sign for the course, and again that's over at options trading dot help.
"stock market" Discussed on Stock Market Options Trading
"Bollinger bands for trading options, and we're going to focus in on the Russell two thousand index, trading our ut or Rut but there's something a little different with the studied than some of the other ones I've shared and really intrigued me. Some excited to share this with you today, but before we get started, you know the deal. Everything on this podcast is for informational purposes only, and this is not financial advice past performance does not guarantee.
"stock market" Discussed on Stock Market Options Trading
"You're basically need five times. The amount of capital trader, a one strike spread if you treated in the same manner where it's. One whole S. P.. Py Point is ten point. You would actually need a thousand dollars to trade that, but we're going to do have strikes and the reason why the S P wise, basically a tenth. Of the SPX. So. With the sixty eight percent win rate with SPX and the seventy two percent win win rate with s p. y. you actually made about the same amount of money. When you're talking about how much capital you're having to use so this kind of gets into the realm of capital efficiency, so s P, Y, you may just over a thousand dollars trading one hundred dollars at a time during the three year period and for spx. You may just over five thousand dollars. Using five hundred dollars at a time so again very similar amounts of money capital efficiency, wise but the win rate was a little bit different so I, thought that was interesting with that, too. Just like last night I'm GonNa Post the performance. Comparisons of all the stuff I'm talking about here today sometimes makes a little bit better sense to kind. Kind of see these results in the in the reports and things. I'm going to put that over my patriot. On page it's going to be available for anyone who supporting the podcast and I'll put the link in the description or the show notes again. The show notes can be found at stock market options, trading, dot com, and this is episode eight. Okay so so far we, we been basically talking about blindly selling and at the money bull put spread with seven days expiration the past three years so now I wanted to add in a moving average filter that you know would. Hopefully we would think, or at least theoretically would possibly improve the result and again. The idea here is to just you know if you if you took this trade. If the market was trading above the eighty may, would it improve results by keeping you out of losing traits of the markets and a downtrend Would this moving average filter keep you from trading until the market was back in. You know I'm air quoting here an uptrend. So the first thing that you know, we should expect whenever you add any additional filter or indicator or something to any kind of trading strategy. Most likely it's going to reduce the number of traits. It's filter. It's GONNA filter out traits that you know could be not desirable to make your trading a little bit more accurate, so when we add a moving average filter basically expecting to have a reduced number of trades over the three year period and Did all three days had a reduced number of trays. Obviously, because you know part of the time, the market would be trading below eighty and may, and then we just wouldn't trade the strategy and let's talk about each day here so Monday. It actually decrease the win rate so and let me be clear. When the market was training above the eighty, and May, we were only taking his trade, if it was trading below the eighty, and May, we were not taking the trade and the win rate actually decreased from seventy three percent to seventy percents, so not a huge decrease, but it actually reduced the Prophet and went from eight hundred and forty three dollars. Dollars with no moving average filter to making seven hundred eighty seven dollars with the filter so so for Monday. The Adma filter did not help the trade now Wednesday was interesting. Remember Wednesday was the day that performed the best..
"stock market" Discussed on Stock Market Options Trading
"You want to put that When you sell a dollar wide credit spread you need in this case a one hundred dollars for that trade. The reason why you would need more than one hundred dollars though to trade this consistently over time is because you will have some losers and you may have multiple consecutive losers and what that would do if you just started with one hundred bucks and you had to losers or even one loser you would still need more money to to put in because you would have lost some of your hundred bucks. So we're not. I don't really want to you know common or anything on risk allocation and all that stuff. I'm just pointing out that. Even though you only need one hundred dollars to take this trade you may be more than one hundred dollars to continue to take that trade depending on how and where the winners and losers are distributed over time so. We're not going to talk about that but it's wanted to kind of throw that in there so again Not Bad you made five hundred thirty three dollars trading a hundred dollars at a time Again it was a sixty eight percent win rate and again the average duration would be seven day so basically the what the software did for this trade for. Monday is at the end of the day on Monday it. It sold a credit spread and held it until the following Monday and then the following Monday it would just open up a new one and let the other one expire. And that's how you got the sixty eight percent win rate and made five hundred and thirty three dollars so now. Let's talk about Wednesday and I'm GonNa ask you first. He can you know an if you're the CAR JIM or whatever Just think about it. How do you think Wednesday did compared to Monday? Do you think it was more? Do you think it was less? I mean I've been trying to wrack my brain on why this number Or why this performance was like what makes a difference between Monday Wednesday? I really can't put my my head around Or nothing I can prove at least both Wins Day Wednesday did surprisingly a lot better than Monday? So instead of the sixty eight percent win rate Wednesday doing the exact same just trading Wednesdays. Instead of Monday you ended up with a seventy two percent win rate. You had about the same number of trades and you made almost twice as much money so doing the same trait on Monday. Made five hundred thirty three dollars every week for three years..
"stock market" Discussed on Stock Market Options Trading
"Welcome back to the stock market options. Trading podcast is Eric. And I've got some very interesting research data to share with you in this episode around trading weekly options on the S P Y or ESPN spx. Now this is a little bit of an extension of the last couple episodes of the podcast where I was talking with. Al About Trading Really close same day Credit SPREADS ON SPX But we'RE GONNA WE'RE GONNA expand that little bit today we're GonNa talk about trading weekly options With seven days to expiration so you beholding that trade for one week and given that SPX S. P. Y. Have Three expirations per week Monday Wednesday and Friday. I wanted to find out will. Is there any particular day that trade works better so is does Monday outperform Wednesday? Do you think Friday's the best one. Are they the same as any significant difference at all? I think you're going to be Kinda surprised. I know I was when I got the results So we're GonNa talk about that here. And ultimately the underlying goal here is to find a consistent strategy that where we can find an edge to increase our prophets over time. Something simple before we get started though. I wanted to let you know that all the results over on my website. I'M GONNA put a link in the description of the show notes or if you're watching this on Youtube I'll put the link there as well that way you know. Sometimes it's better to see some of the stuff but I wanted to discuss all the results in the episode but again if you'd like the visual of the results that we're going to talk about be sure to check the description and the show notes of the podcast. The results are going to be available to podcasts supporter. So if you're already supporting the podcast great and if you're interested in becoming a podcast supporter you're going to be able to get access to those trainings and videos and results to. Kinda help your trading as well so check out those links You're gonNA find the show notes over at Stock Market. Options TRADING DOT com. And this is.
"stock market" Discussed on Stock Market Options Trading
"Type event and amine by Crisis Alpha is a strategy that looks to generate positive returns and times of high market stress. Maybe a pullback or correction or Black Swan and crisis Alpha is you know. It's similar to a hedge but it's also a little bit different crisis. Alpha can be used on its own as its own strategy. A hedge is often meant to offset losses in an existing position. But this strategy we're talking about today stands more on the side of crisis. Alpha verse versus a hedge and it's a position or strategy to consider regardless of whatever other positions you may have and it looks to generate Alpha and you can read that as making money when stocks are falling. Now I titled the Episode Crisis Alpha For Black Swan events. But you're probably aware you cannot predict a black swan and the whole point of this strategy is not to predict the Black Swan crash or anything or even predict a stock market or anything but the way this strategy works is that by training it consistently conveniently get you into the strategy when the stock market. I starts showing signs of stress. You don't have to wait for the event to happen and that means you don't need to know win. The event is going to happen. You just need to know that this. This strategy is going to profit or look to make profits when that that market stress starts to appear so real quick. The way I discovered or came across this particular strategy was when I was working on developing back testing a quantitative trend following strategy I referred to it as my pure Alpha strategy for stocks and bonds. And we'll go over that you know a little bit but I decided to go ahead and implied this. This quantitative trawling strategy To volatility products and given the recent corona virus crash the piano curve of going long volatility basically looked like a hockey stick. It was very very flat and once a market correction started to occur especially the corona fires crash. This thing just took off in prophets. It was crazy so We're basically applying the pure alpha quantitative trend.
"stock market" Discussed on Stock Market Options Trading
"Company a stock market insurance company. So real quick before we get started. I had originally recorded this episode a few weeks ago before the twenty twenty crash You know around the corona virus so I decided to push the episode out A little bit so if you hear me talk any episode about this being the first episode. You know it's not correct and that and this is why I kind of pushed it out so and real quick. If you haven't heard the first episode you may want go give that one. Listen we're still in the midst of the crash Here I'm I'm recording this early. Mid March and that episode talks about buying SBY call options once the volatility starts settled down so the time is not right now. The trade is not triggered but that is going to be coming at some point. I think it's GonNa be very Profitable for people to get long once the crashes over obviously right so in just a quick comment about the Krona Virus Crash. Were seen once. The Dust Settles selling put credit. Spread is going to be one of the best strategies be trading. Once his over my opinion the volatility is GonNa be high. You're going to be able to get good credits far away from the money at think it's GonNa be a good income strategy and again it's not. We're not ready. We're not there yet. But it's coming so I think this episode is going to help you understand that strategy especially if you're new and real quick in the show notes and the description of the podcast. I'M GONNA put two free training videos related to the strategies if you WANNA get real tactical and and when to trade those things Those will be there. There's no sign up or anything. Just click the links and you can go watch. I'm not you know you don't need to put in your email or whatever So I'M GONNA put that in the description so check that out all right. So let's get started. Put CREDIT SPREADS The insurance trade. Here we go. So there's a few reasons why I think the best strategy for beginners is to put credit spread and one of the main reasons is that it is risk define meaning. You know exactly how much you can lose the most you can lose and you know the Max that you can actually win. Usually end up somewhere in the middle The other thing is that you can trade. These spreads with as little as one hundred dollars so if you have a small count or maybe you just want to kind of dabble and just get started to see how it goes. You can do that with a very little amount of capital and if you weren't how to train them properly. They're easily scalable to larger accounts and larger sizes for example we were talking a little bit about sby versus. Spx and if you can learn the trade sby with a small size you can easily scale that up to PX and the other thing about put credit spread is. There's a lot of ways to train them and I'm going to kind of create the spectrum of sort of conservative versus grossing conservative We're GONNA talk about in a future episode probably the next episode but you really depends on your timeframe you can trade Put credit spreads the day of expiration. They're very fast moving. You can trade them thirty days out. Forty five sixty days albums. Very slow moving. So you can really sort of craft the credit spread or this particular trade To your own You Know Your Own Situation. You can do a small count. Maybe have a day job and you can't watch the market all day so you might want to lean towards a more monthly conservative strategy. Or if you're a little bit more on the trading side you can trade very short term spreads but again the concept is the same. And we'RE GOING TO COVER TODAY. Is that that framework which is gonNA help you You know when you're trading those spreads so the framework I've mentioned is thinking about selling credit spreads in the way of running a stock market insurance company and I'M GONNA loosely call the put credit spread and insurance trade and we're selling the spread. You're not buying it and the reason. This is important for you to understand that the insurance trade concept so that you you choose to trade put credit spreads you'll be able to think in terms of running your own business and you're not going to get caught up in the complexity of the Greeks Technical Analysis Which is a lot of people? Try to make it more complex than it is. So we're going to think of the put credit spread for for today as sort of an insurance company. We're going to call it the insurance trade so before we dive into the insurance straight. I want you to know. This isn't something that I made up But I do think it's the best way for beginning traders. Any intermediate traitors to really think about when they're trained Put credit spreads. And we're also GONNA call them bull put spreads because it's ultimately a bullish type position and I came across the I. I think one of the best ways that this was explained to me was through a book called the Option Traders Hedge Fund by Danish Chin and Marks Sebastian Day. Go into more detail than I'm going to go into But it really helped me understand what I'm doing when it comes to this type spread. They go beyond talk about different spreads as well more complex spreads condors and things like that. But we're really going to kind of focus on the credit spread but still the same. Insurance trade concept apply. So I definitely recommend you go pick up that book. Think you can still get it on a kindle again it's called the option Traders Hedge Fund by Finnish Chin and Marks Bashan. So what I want to really hammer home Is The insurance trade concept? As it pertains to put credit spreads we're basically you're a net option seller in Vardi. Probably read that put options are similar to insurance contracts. And that's why we're GONNA keep it in that insurance framework so real quick. The insurance is the equitable transfer of risk from one party to another. And.