sorry to be so offtopic but does anybody know of a tool to get back into an instagram account..? I somehow forgot the login password. I love any help you can offer me
Thanks for all the additional content while we are all stuck at home. I use your material for Level 2 and this recent content is great for something to look forward to at the end of the day.
I see you are deciding your strikes based on valuation range instead of imp vol, delta and prob ITM/OTM. More difficult to do, I'll try to use that for my trades. Thank you Mark. Great video, do more of this please.
On time value erosion. An interesting information I got from the book Option Math by Scott Nations. Time erosion accelerate toward expiration for ATM and ITM options, everyone knows that. However, time erosion is heavy at the front and decelerate towards expiration for OTM options. This is the first time I come across this information which was not covered anywhere including CFA. Or I wasn't paying attention when reading the curriculum.
Awesome video Mark, appreciate the insight. Generally speaking, how would engage in risk management if it fell below your 240 mark? What trades? Thanks!
I'd like to understand more of shorting SPY Vs rolling down (And out). Shorting and rolling down would usually cost money. Wouldn't rolling down and out be the better option?
Hi Mark - you have mentioned that you like apartment REITs and health care REITs. What are you views on NWH.UN ? Could you do a video on how to analyze it or think about it as you did with BTB.UN. Thank you!
Mark, you are quite possibly one of the best finance educators on the planet. If you taught any other certificate, trading course, etc. I don't CARE, I'll buy it at any price.
Mark you commented that you think the big selloff was liquidity related. I'm curious were there tell-tale markers/quantifiable signs at the time of the selloff that this was liquidity driven? I'm curious what the evidence is for this and what signs I should look out for in the future to see if it's liquidity driven or "genuine" selling
Hello Mark, thanks for your applied videos. They are really interesting. You gained the risk reversal trade, congrats! Would you mind explaining how you calculated the support level at 2490 or reference other video if you are busy please? Thanks in advance.
That depends on your level of comfort. Selling a put risks the stock being put to you, and selling calls risks the stock being called away. If you are comfortable with those risks, then give it a shot.
Less capital tied up, don’t need as much cash as one thinks. I don’t use margin on a normal basis, so if need be I can use margin when assigned. I get assigned about 25% of the time.
Good video. Question about how you prefer range bound equities like AGNC for selling option premium, since one of the inputs to options pricing is volatility wouldn't more volatile stocks create more premium which ultimately compensates the seller for the additional volatility, perhaps more so since the stock is being valued using intrinsic value while the option is being valued using price volatility?
More volatility means higher probability of capital gains, so less willingness to sell calls. I invest for income, hence AGNC. Now I want to double that income.
Mark Meldrum isn’t what matters ROI whether it’s received as income or capital appreciation does it matter much other than for tax purposes(cap gains are taxed less anyway). If AGNC entered a period where its volatility doubled and the options premium increased would you stop this strategy? You don’t think the increase in premium compensates in such a case?
Mark, you mentioned in the video that you would manage your risk if the SPY risk reversal went against you. What would be some ways that you would go about minimizing the risk, at that point in time?
Well, I would be more likely to have SPY assigned to me. 2% yield and a long position at $249. If I did not like the price action down the 249, I would short SPY in the number of deltas to hedge the options.
Hi Mark, exactly what I'm looking for right now. I have been doing hybrid of risk reversals + calendar (cash secured). Selling weekly puts and buying long dated calls. I would be able to adjust the puts over time specially if it slides down. Position can generate more income instead of free position. I don't want to be blind sided. Can you critique this strategy please?
When you think about premium per day, selling short and buying long makes a lot of sense. The delta of the call is lower with longer time, that is the only critique I have.
Hi mark great video! I've been using the gist of this strategy for the last two years with solid success. Unfortunately you can't sell puts in registered accounts (TFSA,RRSP) is there anyway around this that I haven't considered? The covered calls have worked great but I feel I'm leaving money on the table. It seems kind of arbitrary that cash secured put selling is forbidden. Thanks!
@@paulalger10 oh sorry, I wasn't focused in my reply. I think there are 2 things at play here and you need to confirm which you are referring to as similar. To me, there is nothing similar. 1st thing is your objectives/views/convictions are different for the 2 strategies. Mark don't mind when the stock is assigned/exercised/expired worthless. Regardless where the stock ended, he is (almost) equally happy. For writing iron condor, your view is the stock will stay within range and expire worthless/close with a profit otherwise you will make a loss. 2. Premium collected for iron condor will be much less than what Mark gets. You can try to collect higher premium but the range would be so narrow, probability of staying within your range will be very low, most of your trades will be at a loss. Hope this is relevant to your question. Let's wait for Mark to reply to you and to poke holes to my reply.
With all the options strategies out there, which one exposes you for losing your account / unlimited losses ? I keep hearing options imploding accounts, even professional ones ... thanks
Mark, loving the recent content. I never thought I’d see the day you’re using technical analysis😈 I need an explanation here! I’ve always thought you’re very against it based on how you talk about it.
No technical analysis here. I determined the strikes on AGNC based on book value per share, a fundamental indicator. I determined the strikes on SPY based on forward PE multiples, a fundamental indicator.
Mark Meldrum that makes sense. It looked like you were doing this based off the chart (based off recent highs and lows) which is how I like to chart. It’s funny how the two merge sometimes.
Your thinking and rational toward SPY paying you a dividend while ES (Emini S&P 500 future) doesnt is faulty. I understand why you would think that but the futures price (The curve beyond the lead future especially) is derived based on dividends and rates. When SPY dividend is higher then Rates then the futures curve is downward sloping which accounts for the lost dividends compared to saved money on carry cost by owning SPY or the index as outright legs. On the contrary when Rates are higher then the Div the futures curve is upward sloping because the cost to carry is higher then the respective dividend. The reasoning for this is you only need to put up 6K in margin so essentially the other 135K or so in notional value of the contract so you save alot of cash and you can keep it in a money market or invest it however you please. Basically what Im saying is regardless you will end up in the same spot financially owning SPY vs ES at the end of the day. BUT!!.... ES has a big advantage.... That is is it trades 23/5 and there are often anomolies in vol spikes during the asian and london shift that lead to tremendous opportunities to sell vol. For example I was able to sell the 1850 strike put expiring in 3 days during the asian hours for 38.00 ($1900) per contract when the S&P was trading 2550. This is a absolutely absurd price that only came around during the XIV blowout. By trading ES options you can capitalize on opportunities like this. For reference by 9 AM the next morning S&P trading 2625 the options were worth 1.25. ($62)
@@MarkMeldrum Ahhh i gotcha that is a fair point. For me being assigned a future is kinda nice because the thing cash settles regardless but thats just my person preference. I also love the extended hours trading especially on Sunday nights when something crazy happened over the weekend. You can catch some huge short squeezes and locals puking (Market makers).
@@MarkMeldrum haha thanks this actually makes it much clearer! I watched a bloomberg clip earlier, where a guest suggested the reason oil turned negative was because of a massive amount of long positions having to get out... I don't think this is right, surely you wouldn't have big long positions if you knew you couldn't take delivery that close to expiry. Or am I misunderstanding this?
