Options

Some of the crazy volatility we see in the stock market happens because stocks and the stock market are now derivatives of a derivatives market; and no, I didn’t get that backwards. Most people have no idea this has happened, happens, will happen again and again, or how it happens, what it does to market […]

This coming Friday (June 17) is a huge options expiration day. Some $3.2 trillion worth of options contracts expire that afternoon – and it could rock the markets. Why? Because there’s lots of money to be made trading expiration dynamics, and I don’t want you to miss this opportunity. In today’s Total Wealth, you’ll learn […]

Plug Power Inc. (NasdaqCM:PLUG) reports earnings this Thursday, May 20, 2021, after the bell. If the company disappoints on their numbers the stock could tumble.

For Options Tuesday, we’re playing the bond market rally.

You know, the rally that in about 10 days just took the 10-year Treasury from a 1.79% yield to 1.54%.

Yep, the bond market rally that crescendoed last week right when economic data showed the fewest new unemployment claims since March and retail sales skyrocketing 9.8%.

That bond market rally.

One of my favorite things about trading is taking a reasonable amount of risk on a speculative-type trade and having it pay off… big time.

The key to unlocking big gains is lining up an upcoming catalyst with an options trade that has the right reward-to-risk profile. Some pros call these kinds of trades asymmetric risk trades, but I like to call them “multiplier trades” because they’re trades where the upside is 2x, 3x, 4x, or more than the downside.

Here’s an example…

This is a true story.

It’s about U.S. mega-cap tech stocks and equity markets melting-up this summer and how one man drove the action, suckered in retail investors, and painted Wall Street’s biggest pros into a corner. It’s also a lesson for retail traders on how the big boys play and how to not get played by them.