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Every Wednesday Tyler Craig, our resident technician, unleashes a new missive on an investing topic worthy of your attention. Tyler is a member of the Market Technicians Association and holds the Chartered Market Technician designation. He enjoys spinning tales, demystifying markets, and sharing fascinating observations from his trading adventures. Currently Tyler is a mentor for Rich Dad Education and teaches their Options 1 and Options 2 classes.

Tales of a Technician: How to Trade a Covered Put

Written on June 22, 2017 at 8:53 am, by

Cash flow seekers just love the covered call. And why shouldn’t they? It boasts a litany of advantages from cost basis reduction and probability of profit elevation to downside protection and income generation. Not to mention its ability to generate superior risk-adjusted returns over time. But what if the market turns bearish? While some starry-eyedREAD MORE

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Tales of a Technician: Nvidia and the Tale of ROTI

Written on June 13, 2017 at 4:42 pm, by

I just engaged in a smile-inducing, heart warming, dance with none other than NVIDIA. The entire episode illustrated perfectly the concept of Return on Time Invested (ROTI) and how to properly view trade management when selling options. If you’ve ever wondered how to optimize your premium selling ventures then this tales for you. These daysREAD MORE

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The May that Was

Written on June 7, 2017 at 5:11 am, by

Adios May. We hardly knew ye. But you will go down as the second best month of the year for my trading account so thanks for that! I’ll commemorate your contributions by unleashing yet another in a growing line of insightful retrospectives. It’s time to look back to internalize the good the bad and theREAD MORE

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Naked Puts Run Amok

Written on June 1, 2017 at 9:16 am, by

Let’s talk trade management ideas for naked puts run amok. As I see it, there are two ways to implement the naked put strategy: tactical or systematic. You can sell puts on single trade setups as a one-off play or you can sell them monthly on a stock that you want ongoing exposure to. TradeREAD MORE

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Delta Limits

Written on May 24, 2017 at 2:34 pm, by

Tomas posed a question in the clubhouse that warrants further investigation. “On Delta trading, what would be a reasonable delta limit for my portfolio?” Let’s hop to it. First, some background information. Delta is the greek that measures our directional exposure. So the higher your delta, the more exposure you have. And while a largeREAD MORE

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Implications of a Submerged VIX

Written on May 16, 2017 at 9:10 am, by

The recent rendezvous of the CBOE Volatility Index (VIX) with the single digits has the punditry class all aflutter. And with good reason. It’s a rare occurrence seen only a few times over the past 27 years. A sub-10 print on the Street’s favorite fear gauge only strikes in the sleepiest of sleepy markets. It’sREAD MORE

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The April That Was

Written on May 4, 2017 at 8:37 am, by

Another month is in the books. And with that, I’m ready to roll out my fourth monthly retrospective. One thing I was reminded of last month is the reality of diversification. If your approach involves a dozen or so cash flow type strategies across a broad array of asset classes, you will always have somethingREAD MORE

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Concerns of a Condor Caretaker

Written on April 27, 2017 at 10:43 am, by

Early in my trading career, someone introduced me to the mighty condor. ‘Twas a fine bird with iron running through her veins and a wingspan that would make LeBron James jealous. Since then I’ve cared for countless condors. I even carved out a beautiful little spot in my portfolio for an aviary. That way IREAD MORE

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Volatility and the Efficiency of Markets

Written on April 20, 2017 at 10:39 am, by

Today’s tale tackles credit spreads and volatility. Fellow team member Adam posed an interesting question I’d like to address. Check it out: “My question is about volatility, time and credit spreads. When volatility is low, usually your credit spreads are tighter (closer to the money). Same with time, if you sell shorter term expiration, againREAD MORE

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Fear Invades Europe

Written on April 12, 2017 at 11:38 am, by

While U.S. equities continue to dither, things are getting frisky across the pond. Indeed, risk is on the rise in Europe-based ETFs. To analyze, look no further than FEZ which is Europe’s counterpart to the Dow Jones Industrial Average. It includes fifty large-cap stocks from 11 Eurozone countries. Year-to-date foreign stocks have been beating theREAD MORE

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