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12/31/2024

In this video, I break down how I strategically rolled my $RCL puts to lower my strike price and capture extra premium. This simple yet powerful move demonstrates how rolling cash-secured puts can optimize your trades.

For a full write-up, visit my Substack at https://loom.ly/QkcPMa4, where I share more tips and techniques for options investors. Follow for more trading strategies and insights!

12/27/2024

💡 Make 2025 Your Year for Trading and Investing!

As we step into the new year, it’s time to break free from the Groundhog Day cycle of doing the same things over and over. 🛑 Instead, take a moment this weekend to reflect on your trading goals for 2025. Write them down, pin them up, and make a plan to achieve them.

This isn’t just about resolutions—it’s about staying consistent and focused. Let’s make this year the one where you level up your trading journey.

🎉 Wishing you a happy New Year and an exciting start to 2025!

12/26/2024

🎄📈 Santa Claus Rally: Fact or Fiction?

The Santa Claus Rally is a historical market trend where stocks tend to rally during the last 5 trading days of the year and the first 2 of the new year. According to the Trader’s Almanac, this happens about 2/3 of the time.

While there are no guarantees, traders can consider leaning towards positive deltas during this period to add an edge to their trades. It’s another tool in the trading toolkit to potentially tip the odds in your favor.

Here’s to trading smarter this holiday season! 🎅✨

12/23/2024

🌟 Options trading doesn’t have to be intimidating! At Market Taker Mentoring, we help traders at every level—from first-timers to pros. A great place to start? Buying calls. It’s straightforward, beginner-friendly, and sets you up to explore strategies like buying puts, spreads, and covered calls.

💡 Start with just one contract, practice, and focus on managing your risk. With time and effort, you’ll build confidence and skills to trade smarter.

Want to learn more? Let’s trade smart together. 🚀

12/20/2024

📊 Understanding Ratio Call Writing

Ever heard of ratio call writing? It’s a strategy where you:
1️⃣ Own 100 shares of stock.
2️⃣ Sell 2 or more calls—taking on some additional risk.

💹 Why Use It?

Collect extra premium for higher profit potential.
Works best in range-bound markets with strong resistance levels.
⚠️ The Downside:

If the stock soars, your uncovered (naked) calls can lead to significant losses.
It’s like combining a covered call and a short straddle.
🔍 Ratio call writing is situational and not for every trader. Use it with caution and proper analysis!

🎯 Ready to elevate your trading game? Learn how to use the Average True Range (ATR) to set realistic profit targets, man...
12/20/2024

🎯 Ready to elevate your trading game? Learn how to use the Average True Range (ATR) to set realistic profit targets, manage risk, and identify trends. 📈 ATR helps gauge volatility, predict breakout potential, and determine overbought/oversold conditions.

📊 Take advantage of John Seguin's (our Senior Technical Analyst) gift to you! Read the full article here: https://loom.ly/IS-TMbw

12/19/2024

Ever wondered how option prices are set? Spoiler: It’s not random!

1️⃣ Pricing Models:
Tools like ToS's Bjerksund-Stensland calculate the value of an option based on factors like implied volatility and strike price.

2️⃣ Market Makers:
They create bids and asks based on these values, adjusting prices to fit real-time market demand.
Profit? Buying below theoretical value and selling above it—over and over again.

3️⃣ Market Forces:
Real buyers and sellers push bids and asks out of line, creating new opportunities for market makers.

💡 Next time you trade options, think about the intricate system working behind the scenes!


ptionsPricing

12/18/2024

Gold has long been touted as a hedge against inflation, but the data tells a more nuanced story:

📈 Inflation Steady: Over the last 50 years, inflation rose steadily, with $100 in 1975 equivalent to $590 today.
💥 Gold Volatile: Gold soared from $176/oz in 1975 to $2,685/oz today. BUT…

Sharp rises: 1980, 2005, 2022 onward.
Significant drops in between.
🚨 Key Takeaway: Gold doesn’t move in lockstep with inflation. While it can outpace inflation during certain periods, it’s not a reliable hedge for everyday inflation protection.

Trade smart and invest wisely!

12/17/2024

Happy Fed Announcement Eve! Tomorrow’s big news isn’t just the expected 25 basis point rate cut (95% likelihood, CME Fed Funds). The real market mover will be what Fed Chair Jerome Powell says next.

⚖️ If Powell signals the Fed is “done for a while” with rate cuts, markets could sell off sharply. However, if he maintains a data-dependent tone, we’ll look to Thursday’s unemployment data and Friday’s PCE inflation report for future direction.

💡 With so much at stake, it’s a week where every word matters.

📊 Stay informed. Stay ready. Trade smart.

12/16/2024

🔥 Short Squeezes: How They Work and Why They’re Powerful

Ever heard of a short squeeze? It’s when a stock’s price skyrockets as short sellers scramble to cover their positions.

Here’s how it happens:
✔️ Investors bet against a stock by short selling—borrowing shares to sell now and (hopefully) buying back later at a lower price.
✔️ If the stock price climbs instead, short sellers rush to buy back shares to limit losses—driving the price even higher!
✔️ High short interest (e.g., over 15% of shares available for trading) makes this scenario more likely.

Recent example: RXRX 📈 A low-priced stock with high short interest saw a big price spike as buyers piled in and calls were purchased, forcing even more upward pressure.

💥 Short squeezes can present huge opportunities for traders in the know.

12/13/2024

This week, the S&P 500 closed slightly lower, forming a strong resistance level. While a dip might be ahead, there’s also potential for a reversal.

✨ Key Year-End Phenomena:
✔️ Window Dressing: Fund managers adjust portfolios—selling losses & buying winners.
✔️ Tax Planning: Selling losing stocks for tax benefits, while holding winners for long-term gains.

🎄 Santa Claus Rally Insight:
During the last 5 trading days of the year + the first 2 of the new year, there’s a 2/3 chance of market gains.

📊 With one week left until this period begins, what’s your strategy? Share your thoughts!

🎓 Option Greeks: They Multiply, So Pay Attention!Understanding option greeks is vital for any trader, but here’s a commo...
12/13/2024

🎓 Option Greeks: They Multiply, So Pay Attention!

Understanding option greeks is vital for any trader, but here’s a common oversight: as you scale your position, the greeks scale too!

Let’s look at an example:

You buy 1 contract of a call option with a delta of 0.59. A $1 move in the stock changes the premium by $59.
Now, buy 5 contracts, and that $1 move impacts the premium by $295.
And it’s not just delta! Other greeks like gamma, theta, and vega multiply as well:
✔️ Time decay (theta) accelerates with size.
✔️ Volatility (vega) swings get amplified.

Why It Matters:
Scaling up a position amplifies not just potential gains but risks too. If the trade moves against you, losses stack up quickly. Understanding these multipliers helps you stay in control of your trading strategy.

💡 Pro Tip: Use spreads to manage exposure and always keep position sizing in mind!
Read the full article here: https://loom.ly/gOt3XNk

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