CFA 101

SPY Crashes Deployment

2021-11-20T08:13:00.005-08:00

When 10% Deploy 10% , 15% drops Deploy 22% , 20% drops Deploy 30%

Crypto - CSPAN

2021-11-04T06:36:00.003-07:00

Cryptocurrency Markets | C-SPAN.org

Active Wealth Accelerator

2021-10-26T22:21:00.002-07:00

A Client-First Culture | BNY Mellon Wealth Management

https://www.bnymellonwealth.com/index.jsp

Very good articles ..

Butterflies , Condors and Iron Spreads

2021-10-03T12:31:00.004-07:00

Butterfly means 3 strikes with either calls or puts (1:2 and 2:3)

Condor means 4 strikes either calls or puts (1:2 and 3:4)

Iron means both puts and calls with 3 or 4 strikes --

( Type A 1:2 call and 2:3 put Iron Butterfly

Type B 1:2 call and 3:4 put Iron Condor

)

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Long call Butterfly

composition - 2 call vertical spreads

a. bull call spread (debit)

b. bear call spread (credit)

Buy 1 X 60.00 call at 4.10

Sell 2 X 65.00 calls at 2.00

Buy 1 X 70.00 call at 0.85

Total 0.95 net debit

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Iron Butterfly.

compostion - 2 ways to look at it

. bull put spread (credit) + bear call spread (credit)

. short straddle (credit) + long strangle (debit)

Buy 1 X 60.00 put at 0.60

Sell 1 X 70.00 put at 3.80

Sell 1 X 70.00 call at 4.10

Buy 1 X 80.00 call at 1.05

Total 6.25 net credit.

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Long call Condor.

Composition - 2 call vertical spreads

a. bull call spread (debit)

b. bear call spread (credit)

Buy 1 X 75.00 call at -9.00

Sell 1 X 80.00 call at 5.90

Sell 1 X 85.00 call at 3.60

Buy 1 X 90.00 call at -2.00

Total -1.50 net debit.

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Iron Condors

. bull put spread (credit) + bear call spread (credit)

. short strangle (credit) + long wider strangle (debit)

Buy 1 X 60.00 put at 1.30

Sell 1 X 65.00 put at 3.10

Sell 1 X 70.00 call at 2.30

Buy 1 X 75.00 call at 1.10

Total 3.00 net credit.

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Butterfly Options and Condor Options Trading Strategies Explained - YouTube

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Greeks

2021-10-03T00:33:00.007-07:00

Curriculum: All About Options (cmegroup.com)

Long Call Scenarios (cmegroup.com)

5 market scenarios.

2021-05-07T07:46:00.004-07:00

There are 5 market scenarios.

1) Extremely Bearish 2) Slightly Bearish 3) Sideways 4) Slightly Bullish 5) Extremely Bullish Income generation strategies (selling cash secured puts, selling covered calls, selling poor man's covered calls (buy LEAPS and selling covered calls), butterflys, broken wing butterflys, diagonals etc work in scenario #2, #3 and #4. There were a few comments on how people got burnt by selling covered calls. That's because year 2020 was scenario #5. An anomaly. Also because income generation strategies are not supposed to be on speculative stocks. There is a time for each strategy and there is a strategy for each ticker. Scenario #1 and Scenario #5 call for altogether different strategies. The more well rounded a trader is, the more normalized the annual returns are. Else a perma-bull will make money continuously for 4 years and lose in 1 year. A Perma-Bear will lose money continuously for 4 years and make all of that and more in 1 year. My advice? Spend quality time in learning and mastering at least couple of strategies and you will be able to manage your own portfolio. That will take at least 3 to 5 years minimum, though. The power of F.I.R.E. is not just teaching strategies. The power of FIRE is COLLABORATION. If we can establish that within the community, it serves even economic, social & political purposes. That's the true goal of F.I.R.E.

200 Moving Average - Rules-based methodologies.

2021-04-24T03:34:00.005-07:00

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure

(i) 100% to the S&P 500®

(ii) 50% to the S&P 500 and 50% to 3-Month US Treasury bills, or

(iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P 500 and its 200 business day historical simple moving average (the “200-day moving average”).

Equity Indicator. When the S&P 500 closes above its 200-day moving average for five consecutive business days (the “Equity Indicator”), the exposure of the Index will be 100% to the S&P 500, effective at the close of business on the first business day following the date of the Equity Indicator. The Index will be in a new position effective on the second business day.

Once the Equity Indicator has been triggered, the exposure of the Index will next change to either be 50% to the S&P 500 and 50% to 3-Month US Treasury bills if the 50/50 Indicator (described below) is triggered or 100% to 3-Month US Treasury bills if both the 50/50 Indicator and the T-Bill Indicator (described below) are triggered simultaneously, effective at the close of business on the first business day following the date of the indicator(s). The Index will be in a new position effective on the second business day.

50/50 Indicator. When the S&P 500 closes below its 200-day moving average for five consecutive business days (the “50/50 Indicator”), the exposure of the Index will be 50% to the S&P 500 and 50% to 3-Month US Treasury bills, effective at the close of business on the first business day following the date of the 50/50 Indicator. The Index will be in a new position effective on the second business day. Following the effectiveness of the 50/50 Indicator, the exposure of the Index may be greater than or less than 50% with respect to the S&P 500 and 3-Month US Treasury bills depending on their respective performance until either the Equity Indicator or T-Bill Indicator (described below) is triggered. Once the 50/50 Indicator has been triggered, the exposure of the Index will next change to either be 100% to the S&P 500 if the Equity Indicator is triggered or 100% to 3-Month US Treasury bills if the T-Bill Indicator (described below) is triggered, effective at the close of business on the first business day following the date of the indicator. The Index will be in a new position effective on the second business day.

T-Bill Indicator. When the S&P 500’s 200-day moving average closes lower than its value from five business days earlier (the “T-Bill Indicator”) and the 50/50 Indicator has been triggered, the exposure of the Index will be 100% to 3-Month US Treasury bills, effective at the close of business on the first business day following the date of the T-Bill Indicator. The Index will be in a new position effective on the second business day.

For example, if today is Wednesday and the S&P 500’s 200-day moving average closes lower than it did on the fifth preceding business day (Wednesday of the preceding week), the T-Bill Indicator is triggered. Unlike the operation of the Equity Indicator and 50/50 Indicator, the closing values on the days in between today and the fifth preceding business day do not affect whether the T-Bill Indicator has been triggered; rather, the T-Bill Indicator simply compares today’s closing value to the closing value five business days earlier. However, the Index will not move directly from 100% exposure to the S&P 500 to 100% exposure to 3-Month US Treasury bills unless the 50/50 Indicator was simultaneously triggered following the most recent triggering of the Equity Indicator.

Once the T-Bill Indicator has been triggered, the exposure of the Index will next change to be 100% to the S&P 500 if the Equity Indicator is triggered, effective at the close of business on the first business day following the date of the indicator. The Index will be in a new position effective on the second business day. Once the T-Bill Indicator has been triggered, the Index will not return to its 50/50 position unless the Equity Indicator is first triggered, followed by the 50/50 Indicator being triggered.

Business Cycles

2021-03-20T19:48:00.001-07:00

SPY Composition

2021-03-20T19:18:00.006-07:00

MACD Indicator

2021-03-20T18:04:00.002-07:00

https://www.youtube.com/watch?v=Cdaw7Rt53Ns

Options - Iron condor and Butterfly

2021-03-16T21:08:00.001-07:00

4 Strikes (call & put combination -- two spreads)

3 Strikes (calls )

4 Strikes (call & put -- two spreads)

Option with 2 Legs - with different strategies

2021-02-22T19:58:00.001-08:00

Rules how to become Rich

2021-02-15T06:45:00.001-08:00

Option Greeks Positive and Negative strategies.

2021-02-14T18:18:00.006-08:00

Gamma Summary

Gamma measures the rate of change for delta with respect to the underlying asset's price.

All long options have positive gamma and all short options have negative gamma.

The gamma of a position tells us how much a $1.00 move in the underlying will change an option’s delta.

We never hold our trades till expiration to avoid increased gamma risk.

Delta Summary

Positions with positive delta increase in value if the underlying goes up

Positions with negative delta increase in value if the underlying goes down

An option contract with a delta of 0.50 is theoretically equivalent to holding 50 shares of stock

100 shares of stock is theoretically equivalent to an option contract with a 1.00 delta

https://steadyoptions.com/articles/options-greeks/

Price Channel

2021-02-11T19:07:00.003-08:00

Trade with Price Channel Pattern Strategy (tradingstrategyguides.com

Candle Stick Patterns

2021-02-07T10:28:00.004-08:00

Study Technicals.

2021-01-31T10:24:00.003-08:00

https://www.trendspider.com/university/

Charting Features

Standard Charts
Manual Drawing
Logarithmic Scale
Indicators
Fibonacci Sequences
Anchored Indicators
Automatic Anchoring
Raindrop Charts™

Automated Analysis

Trendline Detection
Breakout Detection
Auto VWAP Anchoring
Candlestick Pattern
Automated Fibonaccis
Heatmaps

Multi-Timeframe Analysis

Manual Drawings
Indicators
Trendlines
Fibonaccis

Market Scanner

Scanning
Multi-Timeframe Scan
Multi-Factor Scan
Intraday Scanning

Backtesting

Strategy Tester
Intraday Backtesting
Long-term Backtesting
Monthly Backtests

Alerts

Indicator Alerts
Alerts on Drawings
Trendline Alerts
Fibonacci Alerts
Sensitivity Control
Dynamic Alert Triggers
Multi-Factor Alerts
Multi-Timeframe Alerts

Types of Trading.

2021-01-25T07:46:00.001-08:00

Stocks Recommended 2021

2021-01-21T07:31:00.011-08:00

Venkat Garu

AMZN

LMND

DASH

ABNB

PLTR

SNOW

60-70% of your portfolio in mega caps such as AMZN MSFT APPL SPY IWM QQQ 30 to 20% in growth stocks such as SHOP TSLA TTD SNOW PLTR LMND ABNB DASH TDOC etc. 10% in speculative trades such as GME CCIV SPAC's etc.

======================================================

- OTT replacing cable (SVOD/AVOD)

Identifying good companies that fall into these categories.

Ecommerce - SHOP, AMZN, ETSY are some that came to my mind

(Left out Chinese stocks - BABA, PDD, SE etc) (MELI and JMIA - outside of US) OZON

Clean Energy: PLUG, FLSR, CSIQ, TSLA :slight_smile: , RUN, SEDG

Cloud/Software: TWLO, OKTA, NET, CRWD, SNOW, TTD, PINS, ZS etc

Fintech/Payments: SQ, PYPL, ADYEY

Online games:EA, GME, ATVI,U

Online gambling: DKNG, SGMS,PENN

OTT - ROKU, TTD, MGNI, CURI (small cap), FUBO (speculative and double fool pick)

Exercise at home - PTON, NLS (sympathy play)

Remote health - TDOC and AMWL

Remote work - FVRR and ZM

Edge computing (which will grow bigger than cloud computing) : FSLY and NET

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Puru's List

$ADYEY $AFTPY $ACTC* $BAINF (4477 Tokyo) $BIB $CRWD $CURI* $DOCU $DKNG $FUBO $IPOE* $MELI $OPEN* $OZON $PLTR $PINS $ROKU $SE $SHOP $SKLZ $SQ $STNE $TWLO $VRM

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Entering a Bullish stock

2020-07-27T12:40:00.004-07:00

If you think a stock is bullish, here are some ways to get into the trade: 1) Buying a stock (Stock Down - Lose money; Stock Sideways - no money; Stock Up - Make money)

2) Selling a CSP (Stock Down - Lose lesser money; Stock Sideways - Make money; Stock Up - Make lesser money)

3) Selling a Put Spread (Down - Lose All Money; Sideway - Make some money; Up - Make All Money)

4) Buying an OTM Call (Down - Lose All Money; Sideways - Lose All Money; Up - Make Lots of Money)

I am a big fan of option #2. There are many people that make money through #4 (buying an OTM call) but I am not good at it. When you buy an OTM long call, you have to get two things right. Price & Time. Please keep this in mind when you buy OTM calls. Personally I am not good at it.

12:32 PM

And if you buy OTM puts or calls just before earnings, the premium gets crushed immediately after the earnings. For example, stock is 100, if you buy a put for $2 and a call for $2, then stock goes up, you won't make any money at least until stock crosses 104.

Ichimuku Indicators

2020-07-27T09:19:00.002-07:00

https://ichimokutrader.com/signals.html

Financial_Independence

2020-07-26T09:44:00.003-07:00

https://www.madfientist.com/

http://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=20000&annualPct=5&withdrawalRate=4

JL Collins Simple Path to Wealth

https://www.m1finance.com/

Market Data , Option Strategy Scans and Option Strategy Backtesting APIs and CBOE Learning

2020-07-18T15:43:00.000-07:00

https://sandbox.livevol.com/api/v1/docs/

http://www.cboe.com/learncenter/onlineu/UserHome.aspx

https://www.trendspider.com/blog/video-library/

CSP - Selection Criteria

2020-07-16T22:52:00.004-07:00

There are many good CSP candidates out there... BYND, SPCE, TWTR, AMD...
you just rotate from one to another based on their chart patterns.

It has been an excellent CSP candidate.

1) Should be a known stock to me
2) Chart needs to be either sideways or slightly bullish/bearish.
3) Stock needs to have good IV
4) Rolling should be easy with good liquidity

Option Strategies with Volatility

2020-07-12T12:09:00.001-07:00