PropNotes

PropNotes

Hey guys! In this post, we'll detail 5 key tips to keep in mind while selling options that can massively improve trading results over the long term. Let's jump in. Selling options has become a more popular strategy lately, due to the fact that traders can control, to some degree, their win rates and R:R setups. If you've followed us for any length of time, you...

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This year, there have been some big sector moves that have been relatively easy to trade. Tech, Communications, and Consumer Discretionary have all had strong readings for a while, and they enjoyed strong price trends that were relatively straightforward to follow. These trends led to serious returns. Now, things seem to be at a pivot point. There's been some...

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Over the last 6 months, there's been an interesting trend happening. Stocks in media delivery networks, like Charter and Comcast, have done quite well, while shares of content companies, like Disney, Paramount, and Warner Bros, have deeply underperformed. This performance lies in contrast to the "content is king" narrative that's been popular amongst investors...

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Hey guys! Today, we're looking at a Trade Idea in Alibaba, the infamous Chinese Tech company / Retailer. Like most of our trade ideas, this post focuses on selling put options - this time, on BABA shares. In case you're unfamiliar with options -> when you sell a put option, one of two things happens. Either; A.) The stock price finishes above the strike price...

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Hey guys! Today, we're looking at a Trade Idea in Coinbase, the infamous public American crypto exchange. Like most of our trade ideas, this post focuses on selling put options - this time, on COIN shares. In case you're unfamiliar with options -> when you sell a put option, one of two things happens. Either; A.) The stock price finishes above the strike price...

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PropNotes

Hey guys! In this video, we discuss some of the most important things to take into consideration before making the jump to becoming a full-time trader. Topics discussed: - Cash in, cash out and burn rate - The importance of a solid, time-tested strategy - Psychological pitfalls and how to avoid them - Long term wealth impacts Have questions? Let us know in the...

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In the 1980's, Japan was the ascendant global power. Year after year, Japan's GDP grew, and it seemed like a foregone conclusion that the country would flip the USA in terms of economic output and political standing (as you can see from the chart above). What happened next? Utter stagnation. Demographic issues and a popping asset bubble led to issues that...

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Hey guys! In this post, we'll be breaking down our Sector Strength readings for the most recent week, along with the best way to take advantage of how the markets are currently moving. First, here are the most recent readings: Here's our take: Strength across all sectors weakened this last week as the market sold off broadly, ruining momentum and causing...

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Hey guys! Today, we're looking at a Trade Idea in Amazon, the giga-cap tech company and retail behemoth. Like most of our trade ideas, this post focuses on selling put options - this time, on NASDAQ:AMZN shares. In case you're unfamiliar with options -> when you sell a put option, one of two things happens. Either; A.) The stock price finishes above the...

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In early 2020, following the massive injection of liquidity into the financial markets by the Federal Reserve, many onlookers speculated that the price of gold would go on a massive bull run, comparable to the gold super-cycle we saw in the early 2000's: In that market, gold went from ~$260 per ounce to more than $1,600 per ounce, a gain of more than 500% over...

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Hey guys! Today, we're looking at a Trade Idea in AMD, the popular semiconductor company that often plays second fiddle to Nvidia (NVDA). Like most of our trade ideas, this post focuses on selling put options - this time, on AMD shares. In case you're unfamiliar with options -> when you sell a put option, one of two things happens. Either; A.) The stock price...

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Bitcoin. Love it or hate it, it's one of the most important assets of our age. Digital gold? A new monetary system? A defense against inflation? All of these and more? The debate rages on. For our two cents; it doesn't really matter. It's a highly volatile, highly liquid asset, which means that it is one of the best trading vehicles around. Long? Short? Doesn't...

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Hey gang! Thanks for watching. Reminder -The most important bits of a strategy are: - directional bias - where to trade - where to risk - how to manage There's one final piece that we didn't mention in the video - capital management. AKA - how much to spend, of all of your capital, on the risk in a given trade. A great rule of thumb is that no trade should...

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IDEA : Sell SL Green $12.5 strike puts expiring 5/19/2023 for $50 per contract (Currently $0.50 market bid. Be sure to check prices.) NOTE : Your broker will reserve $1,250 in buying power for every contract sold. STATS : -46% breakeven (We have this much “room” until we would be underwater at option expiry.) 30% annualized return 92% chance of max...

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IDEA : Sell Six Flags $20 strike puts expiring 5/19/2023 for $35 per contract (Currently $0.35 market bid. Be sure to check prices.) NOTE : Your broker will reserve $2,000 in buying power for every contract sold. STATS : -20% breakeven (We have this much “room” until we would be underwater at option expiry.) 12.7% annualized return 86% chance of max...

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IDEA : Sell Bill Holdings $45 strike puts expiring 5/19/2023 for $100 per contract (Currently $1.00 market bid. Be sure to check prices.) NOTE : Your broker will reserve $4,500 in buying power for every contract sold. STATS : -37.4% breakeven (We have this much “room” until we would be underwater at option expiry.) 15.6% annualized return 92.3% ...

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Idea : Sell Coinbase $25 strike puts expiring 5/19/2023 for $55 per contract ($0.55 market bid) Note : Your broker will reserve $2,500 in buying power for every contract sold. Stats : -67% breakeven (underlying stock can drop this much until assignment) 13.6% annualized return 97% chance of max profit Comments : Coinbase is a bedrock crypto company....

PropNotes Updated 

Hey guys! I haven't posted in a while, so I thought I'd share something that I've been looking at more and more lately - GST. For those who don't know, GST is the main utility coin of the popular mobile walk-to-earn Solana app, StepN. For those unfamiliar with the game, it's basically an app that pays you to walk around / run / move, provided you own some of...