Investing, Options Trading and Everything Money
I feel as though I’ve almost cheated you, the reader, already. What can (professional) traders learn from expert gamblers?
Well here’s the thing, most ‘professional’ traders are indeed expert gamblers. Which is what I loved about this video when I found it last night whilst browsing the YouTube App on my Apple TV. Let us not argue this point at least; they’re damned good with their auto-suggestions.
[Read more…]Whilst many analysts are bullish on the healthcare sector, there seems to be one thing most are missing out…drug pricings.
Bernie Sanders and his campaign promises of Medicare for all did indeed further a precipitous drop in the sector before the renewed confidence we have seen in it.
However, let us not forget why the sector was dropping in the first place; Trump’s White House and the bullseye they apparently have on big pharma’s pricing.
This administration has furthered their push for drug companies to lower their prices, much like the last administration did.What does it mean for the sector at-large?
It means that as we get closer to the polls, this initial spike in optimism and Sanders “Medicare for all” not really working out as his chances slim might be over-ridden by Trump and Republicans behind his drug-pricing push facing re-election rather soon.
How do you combat Bernie Sanders and his plan to cut healthcare?
Attack the cost of the drugs and follow through on it.
So watch for rhetoric from the Trump side as we get closer to the wire to switch your bias from bullish to bearish if you indeed have such a bias.
To go a step above, factor in the currency impacts of cheaper drugs (priced in USD) against a weaker or stronger dollar.
Bottom Line: The trade remains bullish for now, but be quick with your profit taking. Or sideline the trade until we get a much clearer direction.
Cheers and trade safe,
Dros.
So a member of my trading room had a question regarding the gains on his puts (shoutout M2).
I feel like my put gains suck. $TSLA from 301.5 to 294 and I only gained 20%
While I’m not one to argue with 20% gains, there’s a simple way to figure it out. I don’t speak much of the option greeks, but I strongly recommend anyone trading options learn them.
So how do you get better returns on puts? Use the greeks…namely Delta. Here’s a quick transcript of my answer from the room:
[Read more…]Voice notes on whats going on right now in markets, at 1:30 PM EST.
The equity markets, despite a strong move up yesterday, are continuing to show signs of weakness.
As I noted in my last post, the technicals point towards some downside in the near future.
Geopolitical tensions and the whirlwind of news around the implications of these things have shoved the market violently in both directions.
Crude is pretty much running the show in terms of carrying/propping up the Dow and the S&P.
Tech looks pretty weak here and financials seem to be weakening a bit as well.
Those numbers were reported 30 minutes ago, the initial reaction was a jerk up on the indices which have since retreated. I think we push up from here into the open.
I took a look at the past few Thursdays and they all have very similar pattern…though with monthly options expiry, today could be different. That said, the pattern has been upward momentum into the open, a quick bear jerk down then a slow ascension through the day followed by selling at the end of the day that’s caught by some bullish order flow into the close.
Some of my favorite unusual options activity from yesterday worth watching include…
Watch markets at 10:30 AM [EST] for the Natural Gas Inventories numbers to decide the next direction of the major indices.
Keep an eye on the 10-year Treasury Notes and Gold as well, they’re both about testing pretty critical resistance levels.
Trade safe.
Cheers,
– dros
The first Boston Marathon was held 121 years ago today and was won by John J. McDermott. Investing should never be a sprint, particularly in these market conditions. McDermott had the right idea.
