Trading Strategies

Next Time You Trade Options, Think About This…

If there’s one thing you can count on in this world, it’s that change is constant. That’s especially true in financial markets. I’m not talking about daily price swings. I’m talking about a fundamental difference between the stock market of today, and the one that existed decades and centuries ago. In the early days of…

Options Arena: SPACdown

Oh, SPACs… The hottest investment of a simpler time — by which I mean, 2021. In theory, they sound great. At some point down the road, the SPAC you buy will turn into a much-anticipated public listing of this or that company. It’s like buying an IPO before the IPO. What’s not to love? Well,…

If You Want to Be a Successful Trader, Learn “O.P.E.”

We’ve all heard the old saying “experience is the best teacher.” I know I heard it a lot growing up. My mom believed that any chore was an “experience” — meaning I heard the phrase every time I was asked to set the table or do the dishes. I may have grumbled then, but as…

Like It or Not, It’s Time to Face the Facts

I want to start today’s piece with a sincere apology to Cathie Wood and her investors. Last week, I highlighted the poor performance of her flagship fund ARKK. This offended some Wood fans. They weren’t happy that I suggested she’s lost investors nearly all their money. One unsettled subscriber went so far as to demand…

My Top 5 Bear Market Targets

We are smack dab in the middle of a bear market. I’ve been saying it for months now. In our Options Arena three weeks ago, I was the lone bear calling for a 10% decline in the S&P 500. And sure enough, it’s fallen as far as 12.4% since then. Now, many investors are in denial….

How Wall Street Really Works (2022 Edition)

How Wall Street Really Works (2022 Edition)

I can still remember sitting in that hot and stuffy classroom at the start of the college semester, listening to my finance professor talk about the intricacies of various stock market theories to describe how stock prices should move. There are plenty of models that attempt to assign a value to stocks, like the discounted…

Upgrading the “Invest Like Buffett” Plan

Many individual investors model their trading strategy off Warren Buffett. The “Invest like Buffett” plan goes like this… (Somehow) find stocks like Buffett Buy and hold those stocks for 50 years Become a billionaire This plan is not for me. For one, I’m not patient enough to hold something for 50 years. But more importantly,…

This “Fast Money” Trader Made 370% in 2 DAYS

Two weeks ago, I filled you in on one heck of an unusual options trade. And it wasn’t like the usual trades I feature in Big Money Monday… Most often, the trades I spot for you are set to expire weeks, if not months from now. That’s because it’s rare to see traders throw six…

What Iraqi Kitchen Spies Taught Me About Trading

When I was stationed as an intelligence analyst in Iraq 12 years ago, my main priority was managing risk. After all, being an intelligence analyst meant my job was to assess rumors. And we faced significant threats. Any mistake carried deadly consequences. So when I heard the whispers about our kitchen staff, my first thought…

Amazon… This Move Backfired

Amazon used to trade for over $1,000 a share… But as of this month, shares are now available for only $100. And, just as expected, hungry investors swooped in and sent the stock soar— No, wait… That’s not quite how the story went. See, in early June, retail giant Amazon (AMZN) announced a 20-for-1 stock split. It was…