Hello everybody, our guest today is Sean McLaughlin, aka @chicagosean on social media.
Sean is the chief options strategist for All Star Charts and Senior Market Strategist at Trade Ideas. He’s been trading for over 20 years starting out as a prop trader during the late 90s, founded a hedge fund shortly thereafter, and since transitioned primarily to trading options.
In this episode we talk about the tech boom of the 1990s, some of the bad habits Sean picked up during those years, and also some of the similarities between those markets and the present day.
We then geek out on options, and discuss Sean’s framework for placing option trades, how equity traders can start using options, gamma squeezes and a whole lot more.
Please enjoy this conversation with my friend, Sean McLaughlin.
Message volume on Stocktwits tends to get very loud at turning pointsLevel II quotes aren’t as telling and powerful as they used to be2021 markets do resemble the euphoria in the 1990s, just in smaller pockets, and not quite as widespreadTrading is really hard, the majority of people who attempt to make a living at trading cannotThe mechanics of trading is pretty easy, what’s hard is that your brain conspires against you to make it harder than it needs to beDon’t quit your day job if you’re looking to full time tradeYou need to find a strategy that fits your temperamentStarts with implied volatility for a stock before you actually place a tradeOptions trading offers greater capital efficiencyGamma squeezes, why they occur, and why they’ll continue to see themThe faster the markets get the slower Sean wants to tradeLearn more & connect with Sean
Follow Sean hereVisit Sean website hereLearn more & connect with Evan & the Trade Risk
Browse the Smarter Trading podcast catalog for this episode's show notes and check out past guestsWatch this episode live on our YouTube channelFollow @evanmedeiros on TwitterFollow @TheTradeRisk on TwitterJoin the Trade Risk's weekly newsletter0:00 Introduction and about the episode1:50 Sean’s background Stocktwits 5:40 Sean’s experience from the late 1990s prop trading4:20 Lessons and bad habits learned from the 1990s12:00 Similarities of retail traders and euphoria between 2021 and 1990s14:40 The truth about trading - it’s hard 21:10 The transition to trading options24:20 Delta neutral portfolios and option strategies31:15 Using implied volatility to decide when to buy or sell options39:20 Swing trading using options45:40 Gamestop, gamma squeezes, and market structure50:55 Book recommendations57:20 Successful trading and final advice to tradersIf you enjoyed this week's episode, we would really appreciate a rating and review on Apple Podcasts so that we can reach more traders and bring on more great guests.
Please keep in mind, all opinions expressed by guests are solely their own opinions and do not reflect the opinion of Evan or the Trade Risk. This podcast is for informational purposes only. Please review our complete disclaimer which applies to the contents of this podcast.