If you have defective and obsolete models, you will produce incorrect analysis and bad policy every time. There’s no better example of this than the Federal Reserve. The Fed uses equilibrium models to understand an economy that is not an…
In a previous piece, I outlined a way of owning stocks at a significant discount. There are several ways to achieve this, though, and this shortcut outlines a completely different way to get the same thing using call options—a big…
Hey everyone! It’s been great learning about so many great traders on the podcast hasn’t it? If you remember the original intent for the podcast ages ago, it’s that I wanted to learn from the best traders in the industry…
Instead of buying outright calls or puts, institutional traders might use a basic risk reversal, which is a mix of both calls and puts to structure a position. A basic risk reversal, however, has significantly more risk that simply buying…
One of the most interesting questions that I’m asked all about event-driven income trading opportunities. Specifically, how to correctly utilize news or events as a trigger for income opportunities. Oftentimes, traders see major price gaps and huge increases in volume as…
There are so many options trading tips and tricks that there is a never ending supply. However overwhelming it may seem, sometimes you never know if there’s one tip out there that could change the trajectory of your entire career….
Most sophisticated traders prefer to trade spreads over outright contracts because it may have some potential advantages over a simple outright long or short position. Intercommodity spreads are some of the most popular spreads traded, and can be very appealing to commodity traders….
There’s a few different reasons why people don’t make money in the markets. A major reason why traders have a hard time making money in the markets is because they don’t differentiate in terms of their time frame. So traders…
Our returning guest for this episode is Mike Bellafiore who is the co-founder of SMB Capital, a prop trading firm in New York City. He’s also written a few books, One Good Trade and The Playbook. He previously appeared as…
Pre-IPO investment opportunities is a great way to get in on those up and coming companies before the IPO is scheduled to hit the market. While pre-IPO opportunities are typically for hedge or large private equity funds who are willing…