Not much, Kevin. Most brokerages let you buy fractional shares of stock, often with little or no commission, so doing our core strategy of buying our top ten stocks and replacing them with new names from the top ten as you get stopped out could probably be done with pretty much any amount of money.
You could do most of our options trades with $200 or less, if you limited yourself to one contract, but those are higher risk, as you can see here, so I would put a much smaller percentage of your account in them. A rule of thumb I use is this: If you put $X in each stock, and you use, say, a 10% trailing stop (meaning you're willing to risk at least a 10% loss), then you shouldn't put more than $0.1X in each options trade. Put in only what you're willing to lose.
Win some, you lose some. TPX had a chance for a profit I think 2 days after earnings, was small but I didn't take it none the less. During that freefall today had a chance to get out at a smaller loss but that afternoon ramp didn't help much.
ONON acting like my PTON trade last year, no relief at all. (Though I'm tempted to start selling puts on the latter again soon).
The long dated bank plays I think are starting to come in nicely, may buy some closer strikes now that vol has cooled somewhat in them. Bid/ask is just so wide.
Been following you for few months and just last week subscribed (think I first saw your postings on Tim Knight's page).
Thanks. I'm not sure if there's a setting for alerts on comment activity; I'll try to find out.
I'll write a follow up post on regional banks next week, but Jim Bianco's on my market watchers list, and according to him on Friday, the thesis I've mentioned here remains intact: regional banks can either raise deposit rates (and see their profit margins squeezed) or face a run on deposits. Bianco noted that WAL posted an increase in deposits because it's paying 5% on them now.
Hopefully last week's gains hold, and we can add some new regional bank short positions next week. I'm doing some homework on narrowing down a list of targets.
Considering subscribing... what's the recommended capital required to make all the trades recommended?
Not much, Kevin. Most brokerages let you buy fractional shares of stock, often with little or no commission, so doing our core strategy of buying our top ten stocks and replacing them with new names from the top ten as you get stopped out could probably be done with pretty much any amount of money.
You could do most of our options trades with $200 or less, if you limited yourself to one contract, but those are higher risk, as you can see here, so I would put a much smaller percentage of your account in them. A rule of thumb I use is this: If you put $X in each stock, and you use, say, a 10% trailing stop (meaning you're willing to risk at least a 10% loss), then you shouldn't put more than $0.1X in each options trade. Put in only what you're willing to lose.
Win some, you lose some. TPX had a chance for a profit I think 2 days after earnings, was small but I didn't take it none the less. During that freefall today had a chance to get out at a smaller loss but that afternoon ramp didn't help much.
ONON acting like my PTON trade last year, no relief at all. (Though I'm tempted to start selling puts on the latter again soon).
The long dated bank plays I think are starting to come in nicely, may buy some closer strikes now that vol has cooled somewhat in them. Bid/ask is just so wide.
Been following you for few months and just last week subscribed (think I first saw your postings on Tim Knight's page).
Anyways, Keep up the good work.
Thanks, BCJ.
I've been thinking of selling puts on PTON too. Sold the $5 strike ones 2 or 3 times last year.
Thanks. I'm not sure if there's a setting for alerts on comment activity; I'll try to find out.
I'll write a follow up post on regional banks next week, but Jim Bianco's on my market watchers list, and according to him on Friday, the thesis I've mentioned here remains intact: regional banks can either raise deposit rates (and see their profit margins squeezed) or face a run on deposits. Bianco noted that WAL posted an increase in deposits because it's paying 5% on them now.
Hopefully last week's gains hold, and we can add some new regional bank short positions next week. I'm doing some homework on narrowing down a list of targets.