Stock Market logoStock Market Station

All the stock market news, every minute updated!

24 September 2021
16:57 hour

Beta-Controlled Options Portfolio

INO.com

18/05/2021 - 17:23

Controlling portfolio beta (a measure of volatility or systemic/market risk of a portfolio compared to the market on the whole) while generating the same or superior returns can be achieved with options. A beta-controlled portfolio can be achieved via a blended approach where 50% cash is held in conjunction with long index-based equities and an […] The post Beta-Controlled Options Portfolio appeared first on INO.com Trader's Blog.


READ THE FULL ARTICLE ON INO.COM

Related headlines:

  1. Smart investing: Know the beta value of your equity investments (28/06/2021 - Financial Express)
    Investors should choose shares with different beta for their portfolios and arrive at a target beta for the portfolio which suits their risk preference
    [visit article]
  2. Why are red days redder for Redditors? An analytical perspective! (14/05/2021 - Reddit Stock Market)
    We have all seen it. SPY drops 2% and then there is a barrage of posts and comments about how it’s due to manipulation/next recession/long-overdue correction etc. I wanted to understand what causes such extreme reactions over small drops in SPY. There might be multiple reasons as mentioned in other posts such as inexperienced investors/lesser time in the market/volatile portfolio. While the first two cannot be proven analytically, we can definitely verify the volatile portfolio concept. For this, first, we have to understand Beta. Put simply, Beta is the measure of the volatility of a stock in relation to the overall market. If we consider SPY as the benchmark, Beta of SPY would be 1. A high-risk tech company with a Beta of 1.75 would be more volatile than the market. I.e., if SPY returns 10% in one week, the company is expected to return 17.5% (75% more than SPY). But, this works both ways. If SPY drops 10%, the stock will drop 17.5%. Herein lies the problem. Here is the list of most discussed stocks last month, along with their Beta values. https://preview.redd.it/fuicageu63z61.png?width=623&format=png&auto=webp&s=6487e65e9c213b9a98a533bce2610757a716aa08 As you can see, almost all of the popular stocks in social media have extreme volatility. For e.g., PLTR has a Beta of 9.6! This means that the stock will drop a whopping 9.6% for every 1% drop in the market. For analysis purposes, I am creating an equally distributed portfolio of these 9 stocks (Coinbase is not considered as it has not been trading long enough to calculate Beta). The average Beta of this portfolio is 3.14! This implies that if SPY drops a mere 3% your portfolio would be down 9.3%. This value would be even higher in case you have a portfolio that is skewed towards CLOV or PLTR. What’s ironic here is that GME with its negative Beta can act as a hedge against red days! Limitations of the analysis: One of the major assumptions with the analysis is that people who talk about stocks probably own that stock which might not be the case. Also, this analysis might not hold for future patterns since Beta accounts only for historical data and cannot predict where the market will go. Finally, the data is taken from nasdaq.com (as of 2nd May) and they haven’t exactly disclosed the time period or the benchmark they use for Beta calculation. Conclusion: As we can prove from the analysis, we significantly underestimate the overall risk we are taking by adding popular stocks to our portfolio. The phenomenal gains we see on good days can easily be taken away on red days which explains the overreaction. In other words, “what Beta giveth, Beta taketh away!”   submitted by   /u/nobjos [link]   [comments]
    [visit article]
  3. Low Beta means less risk correct? (11/04/2021 - Reddit Stocks)
    So I am looking at this one ETF called ARKK and on https://finance.yahoo.com/quote/ARKK/risk/ Risk section it says a Beta of 1.65. I was told low beta means less risk but less profit but this ETF went up 540% in the last 5 years. So am I missing something?   submitted by   /u/Galion- [link]   [comments]
    [visit article]
  4. Trmd torm negative beta -366 (15/09/2021 - Reddit Stocks)
    So I was checking out negative beta stocks because there’s a high possibility a crash is coming so I wanted to check some stocks out.. well I stumbled upon trmd and it’s been telling me that torm has a negative beta -366.47. How is that possible and what universe is it going to if the market goes for a down?   submitted by   /u/Knova_ [link]   [comments]
    [visit article]
  5. Options: Positive Returns Despite Negative Market Returns (08/02/2021 - INO.com)
    Another positive month for the options-based portfolio despite another negative month for the markets. A positive $3,372 in income was generated for January 2021. Generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital is the core of options trading. Options enable smooth and consistent portfolio appreciation […] The post Options: Positive Returns Despite Negative Market Returns appeared first on INO.com Trader's Blog.
    [visit article]
  6. Portronics Kronos Beta Smartwatch: Stay connected whenever and wherever you are (04/08/2021 - Financial Express)
    Kronos Beta has a thin and sleek design, plenty of health tracking features and high capacity battery
    [visit article]
  7. New to investing and willing to beta test a new app? (26/06/2021 - Reddit Stock Market)
    I've been working on an app to help you learn to invest with virtual currency, mimicking a very similar experience to real investing. The app is available for pre-orders on the AppStore, however I'm looking for beta testers to start using the app pre-release in order to ensure stability of the application before it goes live! You can learn more about the app here: https://mushu.io If you'd be interested to beta test the app, I'd absolutely love it if you can fill out this form and I can send you an invite! I'd love all the feedback you can provide :) https://form.questionscout.com/60d680079020d11688a44603   submitted by   /u/davoda [link]   [comments]
    [visit article]
  8. Options: Outperformance Despite Choppy Markets (10/03/2021 - INO.com)
    An agile options-based approach is essential to navigating these choppy markets that we have witnessed thus far in 2021. Generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital is the core of options trading. Options enable smooth and consistent portfolio appreciation without guessing which way the […] The post Options: Outperformance Despite Choppy Markets appeared first on INO.com Trader's Blog.
    [visit article]
  9. Mixed stocks and options portfolio (18/07/2021 - Reddit Stock Market)
    Let me know what you think of this mixed stocks and options portfolio that is 40% in tech stocks, 45% in non-tech stocks, and 15% in tech options. Currently up $50K in first month of portfolio. The goal of this portfolio is to generate at least 50% yearly returns through a mix of buying calls options, writing covered calls and put options, wheeling, and holding a diversified stock portfolio in industries including banking & capital markets, consumer electronics, internet content and information, solar energy, oil & gas, information technology, aerospace & defense, tobacco, food & beverages, life insurance, software, credit services, and home improvement. Another goal is to collect passive income through dividends and compound that through dividend reinvestment. The end goal is to turn a $500k portfolio, which I reallocated on 06/17/2021 to a $5 million dollar portfolio. So far, it is up $50K or 10% over the last month. Moreover, the portfolio also pays around $7,000 in annual dividends (all qualified dividends), which will be automatically reinvested through dividend reinvestment. For the week, most of the gains came from QQQ 03/2022 calls that I purchased back in March I plan to hold these for until 03/2021 to take advantage of long term capital gains. I sold covered short puts on Apple (AAPL) and Goldman Sachs (GS), while waiting for an in the money covered call I wrote on First Solar (FSLR) to expire so I can reallocate the funds from the underlying equity. Please see attached link (don’t want this post to get any more wordy) for all of the positions as well as how I plan to trade this portfolio. ​ https://youtu.be/JIAN3XQyj70   submitted by   /u/diddycorp [link]   [comments]
    [visit article]
  10. Smart Beta Funds: The smarter version of ETF (19/02/2021 - Financial Express)
    In a nutshell, smart-beta funds are transparent in design and rule-based in nature when it comes to stock selection. Over the years, such strategies have demonstrated their ability to beat the markets with comparatively lower risk and reduced cost.
    [visit article]
  11. Mixed stocks and options portfolio (17/07/2021 - Reddit Stock Market)
    ​ Let me know what you think of this mixed stocks and options portfolio that is 40% in tech stocks, 45% in non-tech stocks, and 15% in tech options. Currently up $50K in first month of portfolio. The goal of this portfolio is to generate at least 50% yearly returns through a mix of buying calls options, writing covered calls and put options, wheeling, and holding a diversified stock portfolio in industries including banking & capital markets, consumer electronics, internet content and information, solar energy, oil & gas, information technology, aerospace & defense, tobacco, food & beverages, life insurance, software, credit services, and home improvement. Another goal is to collect passive income through dividends and compound that through dividend reinvestment. The end goal is to turn a $500k portfolio, which I reallocated on 06/17/2021 to a $5 million dollar portfolio. So far, it is up $50K or 10% over the last month. Moreover, the portfolio also pays around $7,000 in annual dividends (all qualified dividends), which will be automatically reinvested through dividend reinvestment. For the week, most of the gains came from QQQ 03/2022 calls that I purchased back in March I plan to hold these for until 03/2021 to take advantage of long term capital gains. I sold covered short puts on Apple (AAPL) and Goldman Sachs (GS), while waiting for an in the money covered call I wrote on First Solar (FSLR) to expire so I can reallocate the funds from the underlying equity. Please see attached link (don’t want this post to get any more wordy) for all of the positions as well as how I plan to trade this portfolio. https://youtu.be/HEroXGgeu54 ​   submitted by   /u/diddycorp [link]   [comments]
    [visit article]
  12. Options: Annualizing Pandemic Lows (07/04/2021 - INO.com)
    Annualizing the pandemic with an agile options-based approach has demonstrated superior returns while mitigating risk. Over the past 12 months, generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital has been the core of this options-based strategy. Options enable smooth and consistent portfolio appreciation without guessing […] The post Options: Annualizing Pandemic Lows appeared first on INO.com Trader's Blog.
    [visit article]
  13. Mixed options and stocks portfolio (24/07/2021 - Reddit Stock Market)
    Let me know what you think of this mixed stocks and options portfolio that is 36% in tech stocks, 46% in non-tech stocks, and 18% in options. As of close of Thursday, portfolio is up $52K in a little over a month of portfolio. The goal of this portfolio is to generate yearly returns that beat out market returns through a mix of buying calls options, writing covered calls and put options, wheeling, and holding a diversified stock portfolio in industries including banking & capital markets, consumer electronics, internet content and information, solar energy, oil & gas, information technology, aerospace & defense, tobacco, food & beverages, life insurance, software, credit services, and home improvement. Another goal is to collect passive income through dividends and compound that through dividend reinvestment. As of 07-22, it is up $52K or 10.4% over the last month. Moreover, the portfolio also pays around $7,000 in annual dividends (all qualified dividends), which will be automatically reinvested through dividend reinvestment. Tech stocks include AAPL, AMD, AMZN, FB, GOOGL, MSFT, and NFLX. None tech stocks include AFL, GS, LMT, LOW, MCD, PFE, PM, UNH, V, and XOM. Options include AAPL 07/30 Expiration covered call with strike price of 137. AAPL 07/30 Expiration CSP with strike price of 136. GS 08/13 CSP with strike price of 365. IWM 01/2022 expiration calls with 214 strike price. QQQ 03/2022 expiration calls with strike prices of 325 and 255. QQQ CSPs expiration 03/2022 and 06/2022 with strike prices of 310 and 320, respectively. I typed as much I as can to explain my positions. See attached video for pie chart of portfolio breakdown and also for a schedule of all holdings. Schedule is updated as of yesterday's closing, not today's closing. ​ https://youtu.be/d2eIkc8IMAg   submitted by   /u/diddycorp [link]   [comments]
    [visit article]
  14. Future of mining? (23/04/2021 - Reddit Stock Market)
    Forgive my ignorance - I am new to the cryptocurrency game, but I'm curious about how to invest in crypto mining companies like RIOT and MARA. So IF, Bitcoin and Etherium are overvalued, and the potential for DOGE might make a serious run for actual use, do these companies ALSO mine for DOGE or just BITCOIN? And IF they don't, would it be reasonable to expect that they don't that we look for alternate investment options? Do we know if there are companies mining MULTIPLE currencies - or is BITCOIN the end all be all for now? I am trying to align my future investments in the "new" game - hoping that it becomes the new norm. I don't want to invest in options that are soon to become irrelevant [ie Beta vs VHS even though BOTH are done]   submitted by   /u/socialrxdad [link]   [comments]
    [visit article]
  15. You have $100,000 to buy stocks! What does that portfolio look like? (22/09/2021 - Reddit Stocks)
    Hello guys, let’s say you have $100,000 to build a portfolio! What does that portfolio look like? It can be anything from Regular stocks, options, REITS, ETF’s, mutual funds, indexes bonds. Anything! Even CASH! I’m wondering what people’s opinions on what portfolios of that size should look like. Does anyone think that $100,000 is a good chunk to start a dividend paying portfolio? If so what companies would you use to get the most bang for your buck! As always this is not financial advice, I just want to know peoples opinions.   submitted by   /u/Local-Rip9621 [link]   [comments]
    [visit article]
  16. Options trading (25/07/2021 - Reddit Stock Market)
    So I have been slowly building my portfolio for a few years, and trying to diversify as much as I can. So far I have mainly been investing in stocks with dividend yields, but I would like to grow a little more to "make up for lost time". I finally got to the point financially where I have a little more to work with and would like to get into options trading. I have watched a couple of videos online and read a couple of articles about it, but it just hasn't clicked with me as of yet. Are there any videos or articles I should read to help understand all the nuances of options trading? Also, what would be a recommendation as to how to start to get a "hands on" experience? Obviously as a noob to options, I would expect low risk is the best route to go. So what would a low risk option look like, if there even is such a thing in trading options? Or is all of this completely off-base?   submitted by   /u/jolly2691 [link]   [comments]
    [visit article]
  17. 10 Essential Options Trading Rules (17/02/2021 - INO.com)
    Generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital is the core of options trading. Options enable smooth and consistent portfolio appreciation and consistent monthly income without guessing which way the market will move. Over the past 9-plus months (May 2020 – February 2021), 203 trades […] The post 10 Essential Options Trading Rules appeared first on INO.com Trader's Blog.
    [visit article]
  18. Is Beta useful when writing call options (04/06/2021 - Reddit Stocks)
    I'm looking to write an OTM call option above my average that is 7 days out. I'm only semi interested in actually keeping the stock as I'll make money even if they get assigned. My question is, how important is delta when making my decision. Right now I'm looking at a .3 or. 4 delta. Just basic knowledge about how delta effects the outcome. Thanks.   submitted by   /u/Seadog442 [link]   [comments]
    [visit article]
  19. What happens when you own Call Options and a merger is finalized? (21/07/2021 - Reddit Stocks)
    I own several Call Options in a company which is merging with Lucid Motors. The final vote on approving the merger is scheduled for tomorrow, July 22nd. What does that mean regarding the call options that I own? The options expiration dates are 8/20/21 and 01/21/22… Will the options simply change into LCID options? I’ve been investing for decades but have never been in this particular position with any of my investments…   submitted by   /u/L00PIE22 [link]   [comments]
    [visit article]
  20. Best way to hedge in a portfolio (17/06/2021 - Reddit Stock Market)
    What does everyone use as a hedge in your portfolio if any? Also what percentage do you have as a hedge? I know a lot of people traditionally will have gold, but gold really wasn't a good hedge in 3/20. I Is It as simple as diversifying your portfolio enough, but on red days it seems like that doesn't even help. Is it best to use options as a way to hedge against some of your positions, although that will cut on some of your upside potential. In the past I would buy TVIX, but they have delisted that and I will do UVXY sometimes. That's also something you wouldn't want to have in your portfolio all the time. Does anyone have an ETFs that they hold all the time? Especially with the incoming inflation that's already here I'm looking for advice. Thanks   submitted by   /u/Worldly-Armadillo-63 [link]   [comments]
    [visit article]
  21. Looking options for a diversified 200k ETF portfolio (23/07/2021 - Reddit Stocks)
    Hello guys, So I have been gradually become the portfolio manager of my family and I have bought several stocks that I find attractive. Mostly all of these are growth or technology related stocks, so far, so good with the majority of them up, except Airbnb and Intel which are 10%-14% down but no heavy impact on the portfolio. So now I want to put a part of the portfolio in ETFs that can help me diversify and I’m looking for something like 70% in low risk/fix income ETF and 30% in growth ETF. I’ve looked into several ETF’s by now but haven’t found a good option so I’m interested in your opinion, suggestions and holdings.   submitted by   /u/Hugobm [link]   [comments]
    [visit article]
  22. Fidelity app re: options positions (01/03/2021 - Reddit Stocks)
    Does the app not track option positions accurately? When looking at individual positions (options and regular shares) it says I am up around $400 for the day, but when I look at the portfolio total/app account at the same time it says I’m down $4? I’m using the mobile app. Am I missing something? All trades are settled.   submitted by   /u/Starbuckwhatdoyahear [link]   [comments]
    [visit article]
  23. Revolutionary Access to Intangible Asset Data of Fortune 500 companies (01/09/2021 - Reddit Stock Market)
    Hey everyone! As the title says, I made a [financial data web app](www.trackerelite.io) that empowers the next generation of investors. For example, We democratize intangible asset data via our web interface. You can access our data on B2B Rights, Brand, Relationships etc that can be protected by Intellectual Property and that drives stake holder Value. I started working on this a few years ago, with the idea that Intangible Assets are the next generation of stock market data. Our platform which is in beta, solves many issues for us and for other people investing in today’s culture. It’s personally has helped drive my portfolio up 700% in the past 3.5 years. I am curious to hear any feedback on the idea but also what we can implement to make the app more useful. Link to the landing page (www.trackerelite.io) *Subscribe on our site for updates and potential early access to our beta ???? *   submitted by   /u/lovers_lane2016 [link]   [comments]
    [visit article]
  24. Volatile situation in Afghanistan the focus of MEA’s talks in Russia (09/07/2021 - Financial Express)
    India stuck to its policy of an Afghan-owned, Afghan-led, and Afghan-controlled peace process, while other countries were engaging directly with the Taliban. Its options were also curtailed by the influence of Rawalpindi on the Taliban.
    [visit article]
  25. Can someone please help explain how this works for PUT options? (22/06/2021 - Reddit Stocks)
    I thought I had a decent understanding of options then I see something like this and get confused. If the share price is going down why are all PUT options increasing in value except one? Naturally it's mine ... put options How does this work? I've seen this with CALLS on occasion as well   submitted by   /u/raydawg2000 [link]   [comments]
    [visit article]
  26. Looking for Comments on my portfolio. I have attached the image and have a combination of shares and options. Please exclude sxp, spy, and qqq. As you see heavily bleeding and as of now 20% below my initial investment. I am hoping to rearrange my portfolio (24/03/2021 - Reddit Stock Market)
      submitted by   /u/MangoExternal [link]   [comments]
    [visit article]
  27. HTZZW and HTZZ (10/08/2021 - Reddit Stocks)
    So with Hertz coming out of bankruptcy, my penny stock became a real boy again and I now have two options in my portfolio. I understand HTZZ is the new symbol but what is HTZZW? I have 645 options at $7.18. Do I need to convert these to HTZZ? I’m a bit of a noob if that wasn’t obvious.   submitted by   /u/guggabump [link]   [comments]
    [visit article]
  28. How to bounce back after losing so much? (14/04/2021 - Reddit Stocks)
    Hey guys, don’t know if this is the right sub for this but I need some advice. I am currently 21 years old, and started investing during the crash last year. I slowly grew my portfolio to around 8,000$ and had $1000 cash saved up. I had a strategy of dividend stock investing with some growth stocks in there. Fast foward to Jan 2021 and I was addicted to the stockmarket. My friend told me to learn about options and debit spreads and all that good stuff. I started making a ton of money with options (because of state of the market before mid-febuary). I grew my portfolio to around 15,000. I had no guidance I was just learning as I went. Well, since I did not realize the downside of options, I was heavily leveraged in options so my portfolio over the last month has basically evaporated. Im down to 4,000 dollars now, and I know I should just construct a good portfolio with risk taken into consideration, but at this point, I feel so set back that I am discouraged to just live my life with some safe stocks and continue to add money over time. Basically, every time I think about the money I’ve lost it makes me discouraged in investing in big cap stocks that will make me 5-20% because I will still be far behind compared to where I was before. I feel sick to my stomach thinking about the money I’ve lost and wished I had someone to tell me to take some profits when I was doing so well. I did learn a lot from losing all this money, but I have so little now that I feel like it doesn’t even matter. Also I know the amount of money is peanuts to many, but I am just a college student and wanted to use the money I made in the market to invest in real estate, and now I feel like that goal is 10x farther than it was in Feb. Any advice would be very appreciated.   submitted by   /u/therealnumberIX [link]   [comments]
    [visit article]
  29. How to Calculate the Expected Return of a Stock Using the CAPM (23/09/2021 - Reddit Stocks)
    The capitalized pricing asset model allows you to estimate your return when investing in a stock based on the level of risk that you are taking. The formula to calculate the CAPM is the following: Expected return = risk free rate + stock beta * (expected market return - risk free rate) Breaking it down, here’s what you need to know for any given stock: Risk-free rate: you can easily the stock’s risk-free rate on Google by searching, “10-year treasury note for …” and using that rate. Expected market return: you can also Google this value, although the historical average market return has been around 7–8% Stock beta: You can calculate the stock beta manually using the formula below, or use the beta found on websites like Bloomberg and Yahoo Finance. Once you have found all of the above values, you can calculate the stock’s estimated return using the CAPM formula. Let’s do Apple as an example: The risk-free rate as of today (July 24, 2021) is 1.276% The expected return is 7.5% According to Yahoo Finance, the beta is 1.21 Altogether we find: Apple’s expected return = 0.01276 + 1.21\(0.075–0.01276)* =0.08807 or 8.80704% Now you know how to calculate a company’s expected return using the CAPM method. Keep in mind this method is not perfect and has its pros and cons that you should consider. However, it is very useful to think about the relationship between the risk you are taking versus the return you should expect. For the full article click here I am happy to answer any questions on the topic.   submitted by   /u/gvalles8 [link]   [comments]
    [visit article]
  30. Strategies to hedge tech heavy portfolio for near-term volatility (28/03/2021 - Reddit Stocks)
    Hello folks, First time poster here and not sure if this is the right place to put it, as my portfolio is a mix of stocks and options. These are literally my opinions and I'm asking for yours; this is not financial advice nor will I take your comments as financial advice. Please don't attack me if your views are different; happy to debate. Many people are new to investing so if this threat gets attention perhaps it can give inspiration to many to look into this more deeply My portfolio is pretty tech heavy. I'm a millenial and I work in tech- my conviction is unwavering for the long-term. However, as I've had more time to be able to actively manage my portfolio, I was thinking about how to profit from near-term volatility as I diamond hand my way through it. I'm not expert though, so this post is mostly to field suggestions from this sub to see what's working for you and perhaps what hasn't. All strategies are based on a view which informs your investment decisions. As such, it's important to note that my view is that there will be short term volatility based on; sharply rising bond yields (not the absolute figure, but the rate at which it grew) has shaken the market; fears of inflation which will prompt Fed to raise rates sooner; fuckin' ship stuck in the Suez Canal which may not only disrupt supply chains but could further exercebate inflation fears in the short-term; the GEE EMM EEE situation which could be a liquidity black hole (in fact this is a potential hedge in itself, more below), and perceptions that these stocks are overvalued to people are taking profits; and of course last and least, the paperhands My current thoughts are: These are all short-term issues; I don't believe there will be persistent inflation (money velocity is at all time lows and tech creates massive deflationary pressures); there will be no going "back to normal", there wil be a new normal (tech adoption was increasing pre-COVID it has only accelerated; it won't go back); I have long-term conviction in all of the tech stocks I'm invested in so I will not sell because of volatility; bull run may slow down but we are not headed into a market crash or persistent bear market; importantly for timing, I believe this volatility may persist through Q2 to beginning Q3 2021. While I'm great at having conviction and being diamond handed, I'm not too experienced with actively managing a portfolio and trying to make profit on near-term volatility. Other than "wheeling" these stocks (which means selling Covered Calls and Cash Secured Puts on highs and lows), I don't really do much (except have some exposure to physical gold and that Coin Which Shall Not Be Named dubbed for these purpoes "Voldemort":). So here is a mix of what I do and what I'm wondering might be a good strategy, but as above, I'd love your thoughts on if these are stupid or if you'd tweak or if you would do something entirely different a) Buying slightly OTM puts on QQQ with Jan 2022 expiry and sell for profit on low periods for QQQ before Q3 as an exit strategy b) Buy puts on current open Call LEAPS with same expiry date but with a different strike to hedge delta (Call LEAPs are approx 0.7 delta so Put LEAPs around -0.3 to -0.4 for same expiry) and sell for profit on lows for the stocks in portfolio c) Buy GEE EMM EEE. I say it like that because I am unsure if the ticker is banned here. Meme aside, if you look at the beta for this stock, according to Yahoo finance, it is -2.06. This means if the market moves down by 10%, this stock would move up by 20.6%. It's crazy but it's been true. I also own this stock, and it's the only thing that's green pretty much. d) Buy Voldermort- Cathie Wood on an interview recently brought this up as a beta hedge. Interestingly, Voldemort is showing low correlation to the market. Therefore, when you have a high beta portfolio (tech/growth stock heavy), increasing exposure to Voldemort actually reduces your overall beta exposure. e) Simply buying calls on VIX with end of Q3/Q4 expiry This is all I'll put here for now because I don't even know if anyone will read this far, but I'm keen to gauge your opinions Cheers!   submitted by   /u/BritishBoyRZ [link]   [comments]
    [visit article]
  31. WhatsApp is apparently sticking to using green colour for notifications in Android app (14/06/2021 - Financial Express)
    The Android beta app users for WhatsApp have once again received the green colour notification feature. The company has been testing a dark blue colour for its notifications but from the looks of it, beta users did not approve of it.
    [visit article]
  32. Understanding Options Value And How To Calculate It? Options value depend on tangible and intangible factors. There is typically an active secondary market in options before their expiration ...https://managed-accounts-ir.com/options-value-calculate/ (22/07/2021 - Reddit Stock Market)
      submitted by   /u/LadyFTrader [link]   [comments]
    [visit article]
  33. Looking to focus my learning (23/03/2021 - Reddit Stocks)
    New to stock trading and trying to devour as much information and learn a lot just so I can get a general idea of where I should focus my attention in what I should be learning. Right now, I’m going in dozens of directions from looking into MIT’s free YouTube courses on finance, portfolio management, controlled risk, etc (though I’m thinking I will need to take some prerequisite in math). The rest of my research is just googling any time I don’t understand something (which is everything), like why market cap is important, what float % is and what it’s used for when doing DD, what to look for in a company to see if it is good to buy stock in, should I learn swing trading 100% or devout some time to learn day trading, how options work and the different strategies, what types of tools should I be using and what are the best tools, how bonds trading works, etc, etc, etc. So I guess my question is, what is best to focus on when learning as a brand new trader or should I just kind of keep going down this route until I get a better, general idea and may figure what direction I want to go as I go. Thanks in advance!   submitted by   /u/ikerus0 [link]   [comments]
    [visit article]
  34. Question about options (24/05/2021 - Reddit Stocks)
    Hey everyone, I have a question about options that I’m not sure where to ask, I’m brand new to investing in stocks. If anyone could explained I’d appreciate it a lot: How does anyone lose a ton of money with options? Why wouldn’t they just let the contracts expire and lose their premium, isn’t that the only real risk you have with options - because it gives you the right not the obligation? I browse WSB and see their “loss porn” and as someone who doesn’t know too much about options I just scratch my head because how is someone so negative on a position - it’s not like the premiums are hundreds of thousands of dollars, are they?!? Thanks y’all, I welcome criticism.   submitted by   /u/__MichaelScott__ [link]   [comments]
    [visit article]
  35. Dividend stocks to park in (31/08/2021 - Reddit Stocks)
    So I’ve come a long way from buying options, to selling options (still do with a small portion of my portfolio), to now being busy with work and wanting to just park my money in solid long term dividend paying companies. Currently I have portions of INTC, TAK, VZ, MPW, K. I am considering Walgreens, STAG, and SONY. I am also considering O but it’s a bit high right now. What are some recommendations?   submitted by   /u/gravityshift12 [link]   [comments]
    [visit article]
  36. What stocks go up or fall less when the market sells off / corrects? (20/07/2021 - Reddit Stocks)
    I've noticed that in general sell offs of course stocks that have more value oriented pes tend to usually not sell off as much. I realize there are inverse etfs, but I'd rather not consider those in this discussion. I would think in general stocks like PG, JNJ, etc would fall less. Also could the beta of a stock be considered in determining stocks that generally are considered more defensive? So in general is it value stocks that are more or less defensive in market corrections? I would think most have a beta of less than 1? Thanks.   submitted by   /u/apooroldinvestor [link]   [comments]
    [visit article]
  37. As a Canadian, what brokerage options do I have besides Wealthsimple for a small portfolio? (24/02/2021 - Reddit Stocks)
    I’m looking to invest $500 so I’m going to open a TFSA. I’m going to trade with it and I’m not looking to buy and sell a ton, I’m investing in company growth. What brokerages are best for this type of investment? I already have a TFSA on Wealthsimple for a different trading portfolio so I have to find another app/trader. Ideally one that is also as free as Wealthsimple.   submitted by   /u/Magners17 [link]   [comments]
    [visit article]
  38. Diversifying a tech heavy portfolio (16/03/2021 - Reddit Stock Market)
    Hi guys, So my portfolio is heavy on two tech tickers : Microsoft and amd. 33 and 40% of total portfolio. I also have some apple , Taiwan semi , GE and NIO, but they are small in relation to the MSFT and amd . My question to you guys is: what as a 30year old can I invest in as long term growth stocks .? If there’s anything I’ve learned it’s to diversify across sectors and to have 75% of my portfolio in two tickers is sort of risky. I just don’t know of many other strong growth options. I had some RCL and BA but I sold them as they were just short term profits from covid which I sold on their big run ups. Does PAYPL , WALMRT, DG hold a lot of growth? What would you suggest ?? Is it dumb to try and aim for a round lot of MSFT so I can sell covered calls?   submitted by   /u/k1tch3nMitts [link]   [comments]
    [visit article]
  39. Options question (06/04/2021 - Reddit Stocks)
    Not sure how to flair this but here goes. How can both call options and put options be down for a particular day. Realistically an underlying security can only move one of two directions (up or down) so wouldn't either puts or calls be up and the opposite be down at any given time?   submitted by   /u/Admiraloftittycity [link]   [comments]
    [visit article]
  40. Hedging a portfolio using market volatility (17/07/2021 - Reddit Stock Market)
    I am looking ito the best way to hedge a portfolio of QQQ, SPY, and DIA options plus VTI shares of about $50k. One way it to buy puts on VTI deep OTM but that is quite expensive and the return isn't much if the market crashes. The puts will expire worthless if the market goes up but of course, I understand that we are using this as insurance. Another way is using volatility to hedge the portfolio especially VIX. This works short-term but not long-term. I am looking into ETFs that follow VIX so I can buy shares and keep them just in case the market loses like 40-50% of its values to at least have something to offset my losses. What are the recommendations? VXX? UVXY? SVXY?   submitted by   /u/MangoExternal [link]   [comments]
    [visit article]
  41. OTA2021-28 - Nasdaq BX Options, NOM, ISE, GEMX, and MRX Introduce Monday and Wednesday Weekly Expirations For QQQ Options (22/04/2021 - Nasdaq Trader)
    News CategoryAlertMarketsWhat You Need To KnowOptions Trader Alert#2021-028The Nasdaq Options Market,Nasdaq BX Options,Nasdaq ISE,Nasdaq GEMX,Nasdaq MRX
    [visit article]
  42. Short Term Strategy - Feedback requested! (19/08/2021 - Reddit Stocks)
    There is a lot of talk at the moment about potential pullback on stocks with rate increases, or stimulus cheques drying up in the US. Some are talking about a pullback of 20-30%. I'm thinking of rebalancing my portfolio and selling some of the more "overvalued" individual stocks that I hold and there are two strategies I'm weighing up to reduce the volatility/risk is my portfolio based on an assumption of an increase in downside risk in the market: 1) Sit in cash: 15 - 20% and wait it out for the next 3 to 6 months and then reevaluate 2) Sell off overvalued individual stocks and use those funds to purchase something with a lower beta like FTSE All World (or other suggestions). If a pullback does materialise I can then rebalance to undervalued individual stocks and go from there Looking for feedback/constructive criticism - Thanks!   submitted by   /u/ilovetheinternet1234 [link]   [comments]
    [visit article]
  43. Options volume (26/03/2021 - Reddit Stocks)
    I haven't bought many options before. Been trading stocks mostly. I've considered options before, but for most things I've traded up to this point, it made more sense to just buy the stock. I recently bought about as many options as I can afford to cover (so not that many), in case I want to exercise them. I didn't realize they keep track of the price while you hold them, and you can buy and sell them without ever covering the shares. So theoretically, I could have bought about 100 times more options. Since the ones I bought expire in 6 months, the price is super volatile. So it seems like buying closer to what I can afford to buy is a bad idea. Thoughts on this? Do you keep options volume to close or maybe up to 2-3 times what you can afford to cover?   submitted by   /u/ss1728 [link]   [comments]
    [visit article]
  44. I analyze mentions and sentiment of stocks across Reddit and Twitter. Last month's most discussed stocks and retail trader’s obsession with volatile stocks! (03/05/2021 - Reddit Stock Market)
    This post is in continuation of a series of posts I made in the previous weeks. The response I received was amazing and a lot of you were asking for continued updates. So here goes! https://preview.redd.it/v5m5t4zzuww61.png?width=624&format=png&auto=webp&s=8253293316a29c3b81d5b8e32c246f8007412ff5 Even though Microvision overtook GME in mentions during the last week of April, overall GME was much more talked about in April. Newcomers to the list were Coinbase due to their IPO and Clover health due to its massive short interest. https://preview.redd.it/fakcfjr1vww61.png?width=623&format=png&auto=webp&s=4d7b32aa3a7d8c423d8ed30b2d3473d17d1aa0be The above graphs show how retail traders love to discuss only high-volatility stocks. The average Beta value across the top 10 most discussed stocks last month was 3.14! In case you are not well versed with Beta, the following is its explanation from Investopedia. Beta is a measure of a stock's volatility in relation to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. April returns for the most discussed stocks of March https://preview.redd.it/qpt4ftl5vww61.png?width=624&format=png&auto=webp&s=7bb8bee4639ce1ca6630db0bfb86e8a4a696ba5e This was one of the most requested information in my posts. Above are the returns you would have got if you invested in the trending stocks last month. 5/9 stocks (ignoring SPY) gave a positive return last month but only 2 of them beat SPY. This is important considering the amount of risk (beta shown above) you are taking with the individual stock. The returns are benchmarked using March 31st closing price and April 30th closing price. Disclaimer: I am not a financial advisor.   submitted by   /u/nobjos [link]   [comments]
    [visit article]
  45. Options scanners? (07/03/2021 - Reddit Stocks)
    What options scanners do you guys recommend to alert you on unusual options activity? I’ve heard of cheddar flow, flow algo, and sweep cast. Has anyone tried them all and can recommend the best one? Or is there a free options activity scanner?   submitted by   /u/MayfieldCalabaza [link]   [comments]
    [visit article]
  46. First Time Options? (03/08/2021 - Reddit Stocks)
    Myself and likely many others have never traded options, how do they work? And what are some "safe" options to start out on? (Not financial advice of course) I am interested in getting started and could use some pointers, thank you!   submitted by   /u/machiavellian_cat96 [link]   [comments]
    [visit article]
  47. OTA2021-51 - Nasdaq Options Market and Nasdaq BX Options Updated Pricing Effective September 1, 2021 (31/08/2021 - Nasdaq Trader)
    News CategoryAlertMarketsWhat You Need To KnowOptions Trader Alert#2021-051The Nasdaq Options Market,Nasdaq BX Options
    [visit article]
  48. Stocks vs Options. Is it possible to make good money buying stocks or are options the only way to go. (14/03/2021 - Reddit Stocks)
    Greetings and salutations, It seems to me that any gain porn I've ever seen comes from people becoming millionaires in the space of 1-3 years by trading options. Being relatively new to stocks and trading, I've bought into a few stocks here and there but the only feasible way to great gains (and equally great losses) is through options. Am I wrong?   submitted by   /u/DaFatKontroller [link]   [comments]
    [visit article]
  49. Best platform for options trading? (24/08/2021 - Reddit Stock Market)
    Curious what platforms people use and like. Currently I have robinhood and fidelity. I’ve used both for years, but only started doing options the last year. I like Robinhood’s set up in the sense they organize options by date of expiry. However, I absolutely hate they only have stop limits and half the time the system doesn’t catch them. On fidelity I’m not a big fan of how they organize the options in with the stocks. You can sort all different ways, but nothing by date. I do love they have trailing and stop limit loss on their options. So… what platforms out there might combine the best of both worlds?!   submitted by   /u/flowersanschampagne [link]   [comments]
    [visit article]

For more information mailto [email protected]. Disclaimer.