In this week’s episode, trader sprocket888 is joined by viperxl007. This week, we take a break from ‘trading’ and focus on retirement. This is a topic that too many people put off until later, only to find that later comes too late. We know there can be anxiety and uncertainty regarding all the different retirement… Read More »Retirement: Even RedBananas need to retire.

In this week’s episode, trader sprocket888 is joined by viperxl007. The Fed has cut interest rates by 0.5%, and the two traders are taking a look at the price action associated with this move. They also discuss if anything will influence their calculus or strategy now that the rate cut has been made. Viper then… Read More »To roll or not to roll: A look at a real example with $SBUX.

In this week’s episode, trader sprocket888 is joined by viperxl007. The two traders take a look at different trading tools. There is more to trading than simply buying and selling shares. Many financial products out there will allow you to express your thesis in various ways. Each of these tools has different aspects that may… Read More »Kid, you got options: A look at different trading tools.

In this week’s episode, trader sprocket888 is joined by viperxl007. sprocket888 updates traders on his latest attempt at strangling the big green monster. He opened up a short strangle play on $NVDA earnings. Then, the two traders discuss their general thoughts on the market in light of the latest moves by the Oracle of Omaha.… Read More »Market Ramblings: A view from the two most important schmucks on the Internet.

In this week’s episode, trader sprocket888 is joined by viperxl007. It has been over a month since Viper has been on the show, so in this episode, Sprocket gets updated on what Viper has been doing. Additionally, the two hosts look at ‘The Carry Trade’ meltdown. While the meltdown was paused because governments retreated from… Read More »Interdependent Markets: One domino away from a meltdown

In this week’s episode, trader sprocket888 looks at “The Short Put.” For a trader who has not sold options before but is used to going long stock, the short put is one of the best entry points. It is similar to a limit order, except your order will not fill immediately once the strike is… Read More »The Short Put: Getting paid to wait.

In this week’s episode, trader sprocket888 looks at life after assignment. Sprocket888 entered an earnings strangle on $SBUX at the end of April. This trade quickly turned against him, and he could only pick out one roll before the assignment. Since that assignment, he has been selling covered calls strategically against the 200 shares he… Read More »$SBUX: There is life after assignment.

In this week’s episode, trader sprocket888 takes a look at hedging. Hedging is trading something opposite your other holdings to help protect you in case you are wrong in your assumption. Lately, the markets have been going up and up and up. This has caused sprocket888 to remember legendary investor Warren Buffet’s advice: “Be fearful… Read More »Hedging: Fearful when others greedy, greedy when others fearful.

In this week’s episode, Trader Sprocket888 extends the back-to-the-basics series and discusses how he screens for the premium selling plays. Two main components drive the premium quantity: time and volatility. He targets a sweet spot when it comes to time and targets extended volatility in hopes of a mean reversion. The basics are covered first,… Read More »Back to the basics: Screening for premium

In this week’s episode, Trader Sprocket888 simplifies the complex world of options trading by returning to the basics. Selling options, Sprocket888’s favorite trade, is relatively straightforward. It’s like selling insurance- the seller hopes they don’t need to fulfill it, and the buyer participates for protection. Sprocket888 first covers the difference between a Put and a… Read More »Back to the basics: Selling option premium