Discover and read the best of Twitter Threads about #DontFightTheFed
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My Five Cents that should help many traders:
There are super successful traders who can bullseye on a fast-moving stock, buy Naked calls, and exit at the correct time. Most are not. They are the 'outliers'. For the 'rest' of us who want to trade, here are some ideas./1
There are super successful traders who can bullseye on a fast-moving stock, buy Naked calls, and exit at the correct time. Most are not. They are the 'outliers'. For the 'rest' of us who want to trade, here are some ideas./1
If you think the stock is going up , some of the strategies I think work best are :
1. DIAGONAL : Buy A Naked Call 45 days and sell Sell call Weeklies . Gets you positive Theta And Positive Delta.
Example : BABA Buy Feb 240 Call / Sell Jan 8 Weeklies 250.
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1. DIAGONAL : Buy A Naked Call 45 days and sell Sell call Weeklies . Gets you positive Theta And Positive Delta.
Example : BABA Buy Feb 240 Call / Sell Jan 8 Weeklies 250.
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2. COVERED CALLS: Buy 100 Stock of BABA / Sell Jan 8 Weeklies 250.
3. POOR MAN'S COVERED CALL: Buy Deep In the Money Calls, Say Buy Feb 225 Calls / Sell Jan 8 Weeklies 250
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3. POOR MAN'S COVERED CALL: Buy Deep In the Money Calls, Say Buy Feb 225 Calls / Sell Jan 8 Weeklies 250
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There is an old saying that goes
"Don't fight the Fed."
Maybe now, this one holds true as well. Consider the following:
*Thread* 1/n
#USA #Economy #Liquidity #MonetaryPolicy #DontFightTheFed #Covid_19
"Don't fight the Fed."
Maybe now, this one holds true as well. Consider the following:
*Thread* 1/n
#USA #Economy #Liquidity #MonetaryPolicy #DontFightTheFed #Covid_19
2/ Data-wise, we all know that March & April 2020 have turned out to be a catastrophe so far. Just think of initial claims, regional manufacturing PMIs, Flash PMIs etc. etc. Nonetheless, there seems to be light at the end of the tunnel. A data point which has clearly surprised...
3/ to the upside were ZEW Expectations in April 2020. Expectations have increased strongly in all regions including the US, Europe & Japan. At the same time, the assessment of the current situation has collapsed to 2008 lows. A typical pattern at the beginning of new cycles. 
