Episode #92: Using Options to Create Synthetic Stock Positions Without Ownership

  During this Episode, Russ discusses the Large Unprotected Covered Call or L.U.C.C trading strategy.  Large in that the share price is large (think Costco, Netflix, Intuitive Surgical, etc.).  Unprotected in the sense that the strategy doesn't buy insurance in  a protective put option at a lower price (like a collar trade).  It is essentially a large, In The Money ("ITM") covered call.  It is protected from volatility and the large upfront cost by how far down in the money you select, and you give back some of the premium (the intrinsic value portion) - though give back is a misnomer in that it all happens automatically at the brokerage.  Several examples are given.    Don't forget to subscribe to the show!

In this episode, Russ explains the current volatility in today's equity markets.  He gives some context with data points over the past 150 years.  He also lays out the analysts who are bullish and bearish (from the Money Show in Las Vegas, etc.) and their views.  He explains his actions and lays out what he is doing now (seeling cash backed puts, etc.)   Don't Forget to subscribe to the show!

In this episode, Russ explains what to do on a covered call trade when you are wrong and trying to protect your shares and the stock takes off.  He uses what happened to Tesla since the US Election results as an example (the stock has gone up 85% since the election and we had written a $15 up covered call expiring in December 2024).  Russ discussed how you can roll out and up profitably when a stock gets away from you.  He discusses also how the adjustment works on selling a cash backed put option as well with Coinbase as an example.   Don't Forget to subscribe to the show!

Season #6 begins.  In the episode, Russ explains whether thins rally has legs and can continue as well as the top 5 themes for stocks (& their options) for 2025. The investment landscape we are in is covered. Then the 5 themes covered include: 1.)   AI – and the 4 sub areas of this trend 2.)   Cryptocurrency – boom 3.    EV's (& Robotics 4.) )   Healthcare Innovation and the aging population & 5.)   Infrastructure refresh – Roads, Bridges, Airports, etc.   Russ discusses what he is doing now.  Don't Forget to subscribe to the show!

In the episode, Russ explains what to do now with a Presidential election about 26 days away.   Market indexes are also at or near all-time highs.  What do we do? Russ covers 5 topics on this episode (or five courses of action) including: 1.) Writing covered calls – at higher (sometimes stretched) prices - OTM (out of money) by 3%-5%. 2.) Selling (or writing) cash backed put options (at a strike price that is 95% of today's stock price). 3.) Tighten up Stop Loss Orders to 4%-5% down from today's stock prices.  4.) Ride out the volatility in diversified long-term ETF's &  5.) Go short (by buying long puts) to bet down - the riskiest strategy… but it is a choice.  What Russ discusses what he is doing now.    Don't Forget to subscribe to the show!

In the episode, Russ explains why the stock market is 50% science and 50% art.  Everyone seems to want to use logic and mathematical formulas to control (or solve) the stock market.  What they don't realize is that there are millions of individuals all playing in the same place at the same time with different ages, objectives, risk tolerances, etc..  Add in their emotions (of fear and greed) and you quickly realize you can't reduce the stock market to a predictable outcome or a mathematical formula.    Don't Forget to subscribe to the show!

In the episode, Russ explains the Box Spread options strategy.  This strategy is another 4 -legged options strategy in that it puts two spread trades together.   It is like the Iron Condor options strategy on the credit spread side, but the Box strategy is two debit spreads put together.  Russ discusses the type of interest rate environment to use this strategy in and also shows two examples to bring the strategy to life. 

Russ discusses this adjustment / ptotection strategy with markets at all-time highs.   He discusses when and why one may want to adjust and protect their covered call trades.  If the underlying stock (or ETF) has gained and is strongly above the call strike price written when you are already into a trade, is there anything you can do if you wish to protect your covered call trade?  The answer is yes and Russ discusses what the adjustment mechanics are and gives an example.     Don't Forget to subscribe to the show!

Russ discusses how to use a combination of options strategies to simulate the risk & return graph of a stock.  He also discusses the wrinkle he adds to the core strategy to cut off the downside below a certain percentage.  He also gives an example.  You can use this strategy to simulate multiple stocks as well in a portfolio.  Don't Forget to subscribe to the show!

  Episode #91: Reg-T Margin vs. Portfolio Margin Russ discusses the types of accounts margin is used for, the pros and cons of each and the differences between Regulation-T margin and Portfolio Margin.  The origins of Portfolio Margin are covered and the types of strategies to use this type of leverage on.  Remember margin, of all types, is a loan from the broker-dealer to you based on your assets.   This means margin loans can magnify your winners or magnify your losses.  Be careful... but with careful use of margin you can speed up the growth of your account.     Don't Forget to subscribe to the show!