Hi Dr. Mark, I would be interested to hear your thoughts about the limits of expanding the Fed's Balance Sheet and the long term effects of all this money printing. In your opinion is this setting the world up for real problems later on? Or will the Fed quietly monetize the debt?
I think it is better to play individual stocks than spy. .... Spy has a political connection. And also spy has faang and microsoft. Whatever runs from the general stocks will migrate to tech. I tried to play it several times, it is just weird to me.
I was little worried after I saw my bull spreads start losing money yesterday. Thanks for the video now you gave me a confidence no matter how the markets react, I can still save my position and mitigate my risk.
This's the very first time trying to relate/frame option strategy (book knowledge) with reality -- takes a while to recall what I've learned and put behind back of my head already... But in the end, the core of strategy stands upon your prediction of future trend (direction & oscillate range). Thanks for the illustrative sharing. Last hat part was funny lol
The market the past week has been behaving exactly how you outlined in this video. Yesterday was perfect example of S&P running into the resistance at the 3200 level then starts to sell off and ended up turning negative for the day. Great video, can’t wait for those hats!
Very insightful as always Dr. Meldrum, love your applied market series. Revisiting this video because I'm hoping for an update on this, curious for you thoughts on where hope/reality stand as of now and how to apply curriculum knowledge. Cheers.
Hey Mark, What are your opinion on SPAC's? They seem to be getting a lot more attention over the last couple of years and especially the last few months with the success of DraftKings, Nikola, and Virgin Galactic to name a few.
Thanks for the video. 1.Can we accumulate stocks for long-term when markets corrects. 2. what are the metrics that you use for measuring the volatility of the markets? 3. Which pricing model do you use black sholes or binomial model Or do you take positions based on your view without considering them?
Nice video Mark. I had a nice position below 293 and now Cramer turns into bullish and saying the economy is recovering. What a joke, but he definitely did us a favor
Hi Mark. It would be interesting to know your rationale behind the FED playing as containment dam whenever the market hits the Hope area. Thanks for such an interesting video.
What is your view on Gold miners stock? If the market crash, people will flee to gold as safe haven. If the Fed intervene, Gold will push higher due to inflation anticipation. Either way, gold win. Also, gold stocks are among the best performance in recent quarters
Hi professor, Do you believe that tech stocks will continue to hold the momentum going forward especially given the fact that Nasdaq has hit new highs? On a side note thank you so much for taking out some time to make these videos. Really appreciate your efforts.
Mark, what do you think about 1. Tesla's ongoing valuation surge and the various short sellers appearing on CNBC, and 2. Elon Musk's past/current shenanigans as CEO of this high profile listed company. Thanks
Wait, at 6:40 what does he mean by breaking 313+10.70= 323.70 before he make any money??? if you were to buy it now strike at 313 and market goes up by 1 or 2 dollars, you still make money as the premium increases. even if it doesn't hit 323.
Mark Meldrum understood, thank you. I guess the only additional thing that could be helpful may be things to be careful of when making trades (other than the blindingly obvious).
Hey Dr Meldrum !! I've seen your previous video where you spoke about your REITs and ETF portfolio and the option writing you do to reduce your cost basis/build positions, since you've been doing this for a long time, have you ever reduced cost basis to zero on any long term position ?
Hi Mark, what was the calculation you used to figure out your payout if the S&P went to 3,220? How did you come up with a $6.10-6.20 premium from the delta and gamma? I am looking at the SPY option chain and trying to figure out how you came to that number. Also how did you come to the $6.15 premium if you sell the 330 calls? You're the best. I've learned so much from watching your videos!
You have to use a pricing model and lower the amount of time and the raise the underlying price. Those are just estimates based on current levels of volatility.
Hi Mark, what do you think about technology companies right now? Are they overvalued? I've noticed that investors are shifting their funds in and out of techs (in particular, I made some money on Fortinet FTNT by trading both puts and calls). Yesterday, there was a strong June employment report, and stocks went up (overweighting the reality). What is your thoughts regarding the next week? I believe the market will go down again due to rising COVID-19 cases, especially after July 4th celebration (I don't think restrictions are going to stop Americans from gathering together).
I have no idea what next week will look like, but I do have a strategy to follow in a sell off, and a strategy to follow on an upswing. That is the best one can do.
Hi Mark. I appreciate the content that you have been producing. I have been using your program for Lvl 1-2. What are the sources in regards to the reference to the SPY forecasts of 3700-3900? Definitely gonna but a hat even though I don’t wear hats! Lol
I don't think so. Too many businesses have now figured out how to go online quickly - or do curbside pick-up. Don't bet against the adaptability of capitalism.
Hi Mark, 1. If I go long a call at 313 and the market goes down, how long should I wait until I sell the puts 20 pts lower from where the market is at? 2. If the premium on 313 call is 10.70, wont we need the price to break 323.70 to make a profit (unless the market goes down first and we sell the puts)? How is it that we will make a 6.10 - 6.20 profit at 322? Thank you!
1. Whatever you feel comfortable with. Let the market guide you. 2. Time value - if the move up occurs with enough time left to expiration, TV will be positive, you only need to be above 323.7 if you hold to expiration.
Professor, just a clarification. At 11:51, where you mention that the profit on the call is 6.10-6.20, you mean that the price of the 313 call option has increased from 10.70+ 6.10 or 6.20 which comes to about 16.80 or 16.90, is that correct?
shouldn't your "reality range be similar to your hope range? seems a little tight. surely we will inconsequentially break above if we hit that range. 3200-3240?
very interesting and original strategy. i am subscribed. you've indicated elsewhere in the comments that you would avoid a strangle because of your antipathy of being short a call, yet in the instant video you are short 2 puts which pretty much represent the same danger, in fact, double the danger. how do you reconcile that, assuming we ignore the 'going to infinity vs going to zero' argument?
I don’t want to be short calls. That is painful if the market decides fair value is 300 points higher. I don’t mind being short puts since that is inherently a long position on the market. If the market got down to 2800-2900, I don’t mind getting put and being long.
Dr Mark, many thanks for your videos. I have a couple of questions for CFA exams level 1 and 2: 1. For level 1 exam, I am not sure whether to apply for December 2020 or February 2021. Is there a big difference between your 2020 and 2021 packages? which would you advise to purchase? 2. I see that early registration deadline for level 2 is on Sept 2020. Is it possible to purchase it even before having attempted level 1? If yes, let's say then that I fail level 1. Would I be able to get a refund on it? or perhaps could I use it to re-attempt level 1? Thank you.
1. There have been no changes from CFAI for 2021 over 2020. If you are writing in December, choose 2020 however. It is the timing of the mock exam releases that matter. 2. No.
I don't think it will be delayed unless some regions just have a ban on any gatherings of size. Most likely much longer check-in, more space between desks, mandatory masks, etc.
@@MarkMeldrum Dr. Mark. Another great video and I am also buying that hat and will wear proudly! I would appreciate if you can do a quick video on how you calculated that option price for $6.15. There are a lot of inputs and nothing beats your well-detailed explanation. Again, if you can. :) thx
Use Firefox. And check your volume controls, both on the system and on the RU-vid player - it is recorded at the same volume level as all my other videos.
