Therapist: “Ok, tell me your problems.” (grabs a pen and a notepad) Trader 1 “I’m in a situation where I have many trades going on all at once and I’m feeling like throwing spaghetti on a wall to see if it sticks.” Trader 2 “Last week I got 10 naked puts running on +$100 stocks….
System Design Part I: Demystifying Systems
Selling Naked Puts, It’s Naughty yet Nice
In this month’s newsletter, we’re unpacking one of the finest strategies on the Street. Its strengths are many, its weaknesses few. And its proper deployment will bring good fortune to you. Now that we’ve sated our inner poet let’s get down to business. Today’s strategy is a man of many names. Some call him the…
Compounding: The Eighth Wonder of the World
Compounding commands our attention for this month’s newsletter. It’s a powerful force. So powerful, in fact, that mathematical genius Albert Einstein is rumored to have said, “Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.” Now, whether Sir Albert is actually behind…
Option Pricing
This month’s topic can get mundane in a hurry. Indeed, the world of option pricing is littered with mind-numbing mathematics and sleep-inducing theory. But fear not! We’ve taught the masses for years and have created clever ways for breathing excitement into an otherwise torpid topic. Today’s goal is simple – to help you understand just…
How to Protect Your Retirement
Millions of people invest in the stock market in hopes of growing their nest egg large enough for a comfortable retirement. The appeal of stock investing is simple: it offers much bigger returns than your everyday savings account. To wit: Since 1926 the S&P 500 has generated an average annual return of 10%, according to…
Market Cycles
The stock watching class is vast and varied. Some believe markets follow a random walk. Predict the future? Nonsense, they say! Forecasting the market’s next move is like trying to guess the direction of a drunk’s next step as he stumbles down the alleyway. It’s a fool’s errand that makes a monkey of the guesser….