Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about the best stocks to buy. Oftentimes, people always ask me or they're searching online and I see these results pop into the Option Alpha search bar, but everyone's looking for the best stocks to buy. And so, I wanted to offer at least my opinion when it comes to actually purchasing stock. I think the first thing I would say is that if you are going to purchase stock, it's okay to have really big convictions, but do it in small doses. Oftentimes, I think people get really wrapped up in a particular company or a particular sector and they're very bullish, they're very optimistic on them and that's okay. That's a big conviction. But just do it in small doses. Don't over-allocate. As always, as a general rule of thumb, don't over-allocate into any one particular sector or company or industry just in case the bad things that could happen, happen to that particular company or sector or industry. And so, I'm okay having people buy a stock because they love the company or they love the leadership or they love the space. That's fine. Just do it in small doses.

The second thing is if you are going to start buying stock on a more regular basis, I think you have to buy stocks that have value. And so, value can be measured in so many different ways. One of the ways you could do it is through cape ratios. You could also do it, just the regular PE ratios. But whatever metric you end up using, you want to buy stocks that have intrinsic value, that have some definable edge and value. I'm not a fan of buying stocks that have massively negative PE ratios which you see all the time with large growth, high tech companies that IPO. They have these massive expectations and they have to hit these massive expectations for anybody to potentially make money in the stock. I'm not all for that. I would rather see somebody… If you are going to buy stock, buy something with some sort of intrinsic value.

And then the third thing is if you are looking to buy a stock, why not use options to replicate a stock position without the capital requirement? My biggest hang up usually on stock purchases is that stock is inefficient. Any more, it's not efficient in my opinion to go out and spend the capital that would be required to buy 100 shares of stock. I think it's much more capital efficient and a smarter move to use an option strategy to replicate a stock position with a fraction of the capital outlay. We've talked about this a number of times on our weekly podcast inside of our courses and our training tracks, but it allows you then with this additional freed up capital to diversify into other areas or just frankly just leave a little bit of cash left over in case the worst happens. Again, my biggest hang up with stocks is not that I think stocks are terrible. I just think that stocks are inefficient compared to options. Options offer a much more attractive and much more efficient use of capital compared to stock. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about how you can get started trading options in a Roth IRA the right way. A Roth IRA is just simply a retirement account which you've already pre-paid your taxes. And so, you basically cleared the tax hurdle pretty early in the process. And this is why I really like Roth IRAs, is that you pay taxes, you then contribute what's left over after taxes to this IRA account and as a result, now you have a vehicle that grows tax-free and the distributions later on are tax-free as well. When you get started trading options in your IRA, the first thing I think you have to understand is that you have to play the long-term math and the reality is that you're forced to do this anyway. The beautiful thing about trading options in an IRA account is that you might have to be trading for 20 years or 30 years or 40 years before you actually come to a point at which you can start taking distributions and that means you have to play the long-term math and you have to play the long game in these accounts and that actually works to your advantage. As an options trader, we should be doing this naturally, but oftentimes, people who are trading in margin accounts or cash accounts are trying to make a quick buck and end up doing things that are not beneficial to their portfolio long-term.

Number two is – Don't be afraid to trade more often. One of the beautiful things about trading in an IRA account is obviously, the ability to skip or to miss any short-term capital gains tax and this is something that a lot of people fear when trading in a margin or cash account. They don't want to trade too often or they don't want to exit positions too early because they fear these short-term capital gains. But in an IRA account, especially in a Roth account, you've already paid taxes or everything you do grows tax-free. And so, you can trade a little bit more often, you can be potentially a little bit more aggressive with your trading because again, it's in a tax-free growth scenario, so you can scale up the number of contracts that you trade or the frequency in which you trade as well. And number three is – IRA's are not a handicap. I see this all the time, but people always assume wrongly that IRA accounts give them some sort of handicap because they're limited in the types of strategies they can trade. The reality is that you're only limited in one type of strategy to trade and that's an undefined risk trade. Anything that's undefined risk which would be a short call, a short put, short straddles, short strangles, you can't trade in an IRA. Those are easily converted into their risk defined counterparts by just simply creating spreads. You take a short straddle and you create an iron butterfly. You take a short strangle and you create an iron condor. And so, it's not a handicap. It's not something that should limit your ability to trade and in some cases, trade aggressively when implied volatility is high. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about which option strategy to use and why. I think one of the biggest challenges for most traders is the question of – Which option strategy do I use? And while many people would default to using the exact same strategy in every environment, I think that what you have to do is you have to choose the strategies that work best in whatever environment you are currently in and that sometimes can mean tweaking an existing strategy or using a different strategy altogether. What I see people doing more often than not is they use the exact same strategy no matter how far they are from expiration. For example, they would sell a 30 Delta strangle and it doesn't matter if implied volatility is low, it doesn't matter if implied volatility is high, it doesn't matter if they're 30 days from expiration or two days from expiration, they're selling a 30 Delta strangle. And while that might work over the long run, the question is – Is it the most optimal strategy? Are you using the most effective strategy for that particular environment?

The analogy I always use is weather. If you're going outside and it's raining outside, you can hold up your jacket over your head and that would probably get the job done, but it's not the most effective tool. You want to use an umbrella to protect yourself from the rain as opposed to just holding your jacket above your head. If you go outside and it's really, really sunny out, yes, you could wear a hat and that might protect your eyes, but a hat and sunglasses are going to work a little bit better. It's trying to figure out what strategy is the most effective one in the current environment that you're in. This is exactly why we started doing a lot of this research over the last two and three years and built technology and software to help you solve this problem. We wanted to know and I personally wanted to know when I was faced with the market environment what is the best strategy in this environment. We built our toolbox software to kind of help deliver that answer to you. It shows you all the back-tested data for that particular market environment and it ranks all the strategies and tells you – "Hey. This is the exact strategy that you want to start focusing on for this environment. 60 days from expiration and high implied volatility or if you're 30 days to expiration and implied volatility is low, these are the top 10 strategies you should be using."

I think as an options trader, you should be still using core option selling strategies, but you should mold and kind of evolve your strategy to fit the market environment that you're in and that doesn't mean the difference between selling and buying. It just means maybe you adjust the Deltas slightly if you're closer to expiration than not. Maybe you sell option contracts a little bit further away if you're further out from expiration or not. But it's trying to find this optimal set of indicators that work that we can then in the future, program into our upcoming auto-trading bots and our upcoming technology to make the right decisions in the right environment. Hopefully this helps answer the question. I guess there's no unicorn option strategy that works best in every environment. Every environment is a little bit different. It's like the weather. When you go outside and the weather is completely different here versus California versus Texas versus Canada, you need to have the right clothing to function in that environment and just like the markets, when the markets are a little bit different, you need to adapt and evolve your strategy just slightly to function correctly and to make the most of that environment with the optimal strategy. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, I want to cover my top three benefits of trading. Now, when I talk about these three things and I'm talking about trading, I mean broadly speaking. This includes all types of trading. Whether you want to trade stocks, whether you want to trade options or futures or Forex, I think any trading capacity has these three things that become to me, what are some of the most critical benefits of trading. The first is agility. Agility is a lot of things wrapped up in one. It's the speed and the flexibility to move between different products very quickly. The ability in a trading environment to stop trading oil and immediately within two minutes, start trading natural gas or gold or silver or some index or tech company is unprecedented. There's no other place in the world as an investor where you can quickly move such a large chunk of capital and money from one industry sector or security to another in literally the snap of a finger. And so, that speed and flexibility, that agility to quickly move from one thing to another I think is one of the top benefits that trading has. If you think about probably the opposite end of the spectrum which would be real estate or businesses, commercial real estate property, if you wanted to move out of those securities or sell your position, it's going to take months or even years in some cases to liquidate and move that position. And so, the speed and the agility aspect of being able to quickly again, unwind something and move to a completely different industry or sector I think is again, just unprecedented. You don't find it anywhere else in the business or investing world.

Number two is diversification. Piggybacking right on top of the ability for traders to have some speed and flexibility and agility, the ability for a trader to diversify their portfolio quickly across a very broad range of investing sectors and industries is again, something that is only found in trading. If I was a real estate investor and I wanted to diversify my portfolio, I'd have to buy securities all over the place. I have to buy property in the Southeast and the Midwest and the Northeast. I might have to buy different types of properties and even if I did that, I don't know if I would have a lot of diversity because I'd still be tied to the real estate market or to a certain region of real estate. But as a trader, I can quickly trade anything around the world in the snap of a finger. I can trade crude oil, I can trade gold and silver, I can trade Russia or Brazil or the US or China or Japan, I can trade currencies, I can trade anything I want in the snap of a finger and moreover I guess, I could do all of those different global asset classes and global sectors in a single expiration month. I can trade Chinese stock markets and the euro and the US stock market all wrapped up in one single expiration month. If something happens in the US, but it doesn't affect China or it doesn't affect the euro, then I generally have a much more diversified portfolio.

The third top trading benefit for me is scale. Again, very much like everything that we've discussed, the ability to quickly scale in options trading is something that you don't find anywhere else in the investing world and this is true not only in options trading, but also in stocks and futures, Forex, etcetera. All trading kind of has the same characteristic and that's the ability to quickly scale. As soon as I make $10 for example, I can quickly redeploy that $10 into another trading vehicle or another option contract, a stock if you're trading stock, a futures or Forex contract. You can quickly redeploy capital that you make again, overnight. I mean, literally the next day, you can redeploy capital. Try doing that with real estate. You buy a piece of real estate and you make $1,000 of income, you can't go out and take $1,000 and buy another piece of real estate. It's probably going to require a lot more savings, a lot more accumulation of capital before you can redeploy and scale capital up. And so, for that reason again, trading gives us the ability to quickly move and scale higher and not only just quickly move and scale higher, but there's also a huge pool of investing capital out there. Again, I use real estate and businesses. If you own a small business and you wanted to buy every other little small business around, I mean, at some point, you're going to reach a threshold of just saturating your market or saturating your area and you're not going to be able to scale the same way you thought you would before. But if you're trading and you have $100 and you want to scale to $1,000 or $10,000, $100,000, $1 million, $100 million, $1 billion, you can quickly scale up that rank pretty fast.

Again, I think when you look at different asset vehicles and how the benefits and drawbacks kind of work, I think some of these things that we talked about, the agility, the diversification, the scale become really important as you continue down this path. Especially if you're a new trader or you've just been starting the last couple of years, these are critical, critical benefits that you can't find anywhere else. And so, for that reason, hopefully you guys stay engaged in trading and hopefully you are committed to understanding it and learning it and kind of mastering the craft. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to talk about the definition of a bear market which is simply just this idea that securities or any underlying index would fall at some point. Typically in the same year time period, so in a 52-week time period, it would fall a total of 20% from peak to trough. And so, when we see a security or an index fall by more than 20%, it's classically defined as being in a bear market. Now, this can easily reverse and it can be an intraday bear market. We actually saw in a lot of securities back at the end of 2018 with kind of the reversal and crash that the market had during that period, a lot of securities actually entered a bear market even short-term for a day or so before they bounced out of a bear market. It can happen on a very short period of time, but it's just simply the correction in pricing of 20% from peak to trough.

Now, my personal problem with this is that everyone's always looking for 20% as the linchpin of saying this is where the bear market starts, but we all know that bear markets can start much higher and can take much longer to get to 20%. I really think about bear markets as being stagnant growth or no growth at all. If I see a stock chart or if I see a security that's starting to trend lower, it may not hit 20% yet, but if it had been trending lower over the last two years and it's really not going anywhere, losing 1% or 2% a year, I basically consider it to be in a bear market. We also see stock charts that are basically sideways or lots of volatility with no meaningful action up or down and a lot of sideways movement. Again, to me, that would be more of a bear market. If you're not actually growing, if you're not making new highs and higher highs and higher lows on a stock chart, to me, that's really where stocks start to enter bear markets or sideways markets which could be problematic for traditional investors. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer the question – "Where to get free real-time quotes?" A lot of people who get started are very apprehensive to paying for market data and so, for many people, when they get started, they're trying to find free stock quotes and free option quotes. The reality is that there's a couple places where you can get free quotes out there and you can just Google search it. There's probably a list of 30 or 40. What I've even found in doing this just the other day and kind of researching this a little bit for the podcast is that a lot of these places have tons of ads, they're riddled with opt-ins and boxes and things to check. Even the CBOE, you have to physically type in the security that you want, then pull up the quotes, then type in potentially the expiration month that you want, then pull up the quote and at that point, you're already probably 10 or 15 seconds into actually pulling up a quote on something. How likely is it that that quote is still going to be relevant in that 15 second time period?

I think probably the easiest answer to where to get free quotes is to just simply open up a brokerage account and just fund it with some money. I don't think you actually have to start trading at many brokerages to actually start accessing the data, but actually having the capacity and the ability to trade and having the account open will allow you to start pulling in the brokerage data from the different exchanges. You can open up an account at Thinkorswim or Robinhood or Tastyworks or wherever you want to open up an account and then you can start seeing real data come in. Again, you don't have to make a trade, but that's probably the best place to get real-time quotes on an ongoing basis. A lot of these other places that offer what they say are real quotes come with a lot of stipulations and a lot of strings attached which really don't make that very useful for somebody who needs real-time quotes. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer the question – "What is the DJIA?" DJIA is just a short code for Dow Jones Industrial Average and to put it simply, the Dow Jones is basically just the top 30 largest American publicly traded companies. And so, back in 1896 I believe is when Charles Dow created it and he basically just threw together the largest 30 companies and this became what was known as then the Dow or the Dow Jones. And so, the idea is that this is a price weighted index that basically tracks some of the largest corporations and companies in the US and it's a gauge for how the US economy and how the US market is doing.

Now, I say it's a price weighted index because what the Dow Jones does is it price weights all of the movements of the underlying stock based upon its place in the index with regard to stock price. This means that if it's a higher stock price security, then it generally carries a little bit more weight in how the Dow moves. If you have a company that's like Goldman Sachs that's trading for a couple hundred dollars versus something like GE that was originally in the Dow and then got replaced, but was trading for low dollar amounts, $2, $4, $6 at some point, then the movement in Goldman Sachs is going to have a bigger impact and weighting on the movement of the Dow Jones in general because it's a higher priced security. If we have a 5% move in Goldman Sachs, that's going to carry more weight than a 5% move in say GE because of just purely the stock price. Now, they adjust things for splits and buybacks and mergers and spinoffs and stuff, but ultimately, it's still going to be a price weighted index.

The big benefit obviously to tracking and following the Dow is just you get a good idea of what the biggest 30 companies in the US are doing and these are companies like 3M, American Express, Apple, Coca-Cola, Exxon, Goldman Sachs, Smerk, McDonald's, J.P. Morgan, etcetera and so, you get good broad picture of what's going on. The downside obviously is that 30 companies is not the total representation of the US market, nor any market or even sector and so, there's a lot more companies that are not included which is why people often refer to both the Dow and the S&P 500 as both of the indexes you should track and follow. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer the question – "What are derivatives?" Derivatives are probably one of my most favorite topics because most people really don't understand how they work and yet, they're all around you. You probably used derivatives or you're already in a derivatives contract. You just don't know it yet or maybe it's called something different. But all derivatives are, are financial products or investment products that derive their value from some other asset. And so, basically, if you just break down the word, it's basically deriving value from something else, so a derivative. That's how it kind of comes up and that's the way I always think about it.

One of the things that you're probably in right now is a derivatives contract and you don't even know it, is any type of insurance that you have. It could be personal insurance for your life insurance. It could be insurance on your house, on your automobile, on your motorcycle, on your boat. It could be insurance for your healthcare. But all of those insurance products were price based upon you as the beneficiary or based upon your exact house or your exact automobile and driving record. Those insurance contracts are deriving their value… Their price, their premium that you pay is being pulled from the source which is you, the underlying asset which could be your house, your automobile or you as the individual person. For example, if you are say in your later stage of life and you're a little bit older, you've been smoking and you have a lot of health problems, well, naturally, your insurance cost for health insurance and life insurance is going to be much higher and if we compare this to somebody else and somebody that's young, that's youthful, that has a lot of life ahead of them, never smoked before, doesn't do anything risky, their insurance for health and life insurance is going to be a lot cheaper. Now, it's the same coverage in both cases. Maybe you get the exact same benefits when you actually buy the insurance, but the price of the insurance to get into the policy is wildly different in these two scenarios and this is how insurance products end up being derivatives because each individual contract, the contract with the older person and the contract with the younger person is deriving its value from each respective person. There's no blanket value that's derived across the market. They look at every single individual entity or every single individual asset and then derive the value from that.

That is exactly how options contracts work as well. Options contracts derive their value from a very specific ticker symbol or ETF or futures or index contract and then it's also the exact month that the contract is in and the exact strike price and what side of the market it's on, whether it's a call or a put. That's exactly how the value of those contracts are derived. They're very specific. It's not blanket across the board. We see different option prices across all the option pricing table and spectrum because each individual option contract is being derived for its value based on all of these different sets of criteria for that strike price in that expiration month in that individual ticker or individual index. That's all derivatives are. It's just something that derives value from something else. And so, it's important that you understand this because then, you can start to build frameworks and models around how value starts to be created or destroyed based on the underlying asset. If the option contract that we're trading has intrinsic value, what does that mean for us? How can we maybe increase the intrinsic value or maybe decrease the intrinsic value if we're trading on the short end? I think this is a really interesting topic in general and I think one that many people again, just don't understand because they don't take the time to understand it. But we're using derivatives and we're trading derivatives all the time when we deal with insurance and the exact same thing can be done in the options trading market and you can basically be the insurance company as an option seller. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to go through some company share price basics. If you're just getting started with stock trading or starting to get into options trading or as many people probably in this space have been doing since they were little kids, you've obviously been watching share prices of companies. Apple is trading for X, Amazon is trading for Y, GE is trading for Z, whatever. It doesn't matter what the company is, but we all know intrinsically that there's this company share price that's attached to each company or ticker symbol as they trade and the problem is that most people don't really understand how this number is effectively derived and they get fooled by this absolute share price and they don't ever adjust necessarily for outstanding shares or shares that have been issued by the company and this can sometimes lead people into making decisions wrongly potentially just based on the absolute share price of a company.

To kind of prove this point, here's an example I want to use just on today's podcast. If I told you to quickly make a decision as to which company you would buy, stock A which is trading for $2 or stock B which is trading for $5 and you had to make a decision right now right here to buy the cheaper company, so buy the company that is worth less money, many people would immediately default to buying stock A which is worth $2 versus stock B which is worth $5, but that may be the wrong decision. The right answer to that question would be is that you have to figure out how many shares are outstanding, what the true value of the company is because the absolute share price has nothing to do necessarily if we can't adjust that share price based on the number of shares outstanding or the float that the company has issued. Now, if I told you and gave you a little bit more information and I said, "Okay. Stock A which is trading for $2, they've only issued 100 shares of stock." Basically, the equity value of the entire company…"And this is a really exaggerated extreme answer because it's only 100 shares of stock. But the entire value of company A is only $200, $2 per share, 100 shares of stock. In this case, you could say that basically, company A is worth $200. Now, in this case, what if I said, "Well, company B is trading at $5 per share, but has only issued 10 shares of stock." In this case, company B, although it's a higher per-share price, because they've only issued 10 shares of stock, technically is the least valuable company. You're buying company B at a potentially cheaper price than company A because you're buying a company that has less float in shares, they only have issued 10 shares of stock, but the shares are actually priced at $5 versus $2. I'm assuming at this point that both companies do the same thing, they're in the same industry, they're generating about the same money. Company B actually ends up being a better investment because you buy the same stream of revenue for a much more attractive value once you factor in the shares.

Again, this is where people get fooled all the time and I see this actually time and time again even with family members. I have this conversation all the time with seemingly relatives and they always ask my opinion which I always give them the disclaimer that I have no idea where a company is going to go anyway, but they still want to know. And so, we gossip about stock and they say, "Oh. Well, XYZ is trading for $15, so that's really cheap." And I always reply back and say, "Well, it doesn't really matter because $15 could be really cheap or it could be really expensive. It depends on how many shares they've issued." The great example of this is Berkshire Hathaway which has never split their stock and so, they're trading per-share, upwards of $150,000, $160,000 per share. Now, does that mean that Berkshire Hathaway is overpriced? No. Potentially, it could be a really cheap deal at that price point because they don't issue a lot of shares. For this reason, it's also interesting to note that many companies split their stock all the time as a means to get their share price lower on an absolute basis, so that people are more willing to buy the stock. Sometimes, you'll see companies go through say a 2:1 split or a 4:1 split and they'll split their stock in half and issue twice as many shares, so that the share price goes down. Now, the value of the company didn't change. It's still the same company. It's just how the bookkeeping works. Now they have twice as many shares and the per-share price gets cut in half, but seemingly, this might make the company more attractive for people to buy. If Apple was trading at $200 and the next day, they split their stock and trades at $100, it really doesn't mean that Apple has changed in price. You're not getting it at a 50% discount because now, Apple has twice as many shares outstanding as they did the day before. Now, you're just buying an even smaller fraction of the company than you would've bought otherwise.

Again, it's really important to understand kind of these company share basics because it can sometimes again, lead you astray if you just see something trading for a small or even high value and then wrongly assume that that is attached to maybe the true enterprise value of the company. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer the question – "How reliable are buy sell recommendations?" And we're specifically talking about buy and sell recommendations that come from analysts. Speaking as someone who was an analyst and I was in the REIT space, so I used to cover multi-family and specialty housing office, industrial REITs which was a really cool industry, loved it a lot, I was part of a team that would write the reports. And so, we would sit down together and we would compile research, we would do analysis on the company, the industry, the sectors, the real estate holdings that these RIETs had and we basically put out our buy sell hold recommendation. The question now is – "How reliable are these?" And the answer is – I don't think they're that reliable. I mean, as a person that was actually doing it, again, what you're looking at is you're looking to figure out some sort of intrinsic value, some fundamental value in the company, but unfortunately, because of how fast things move and the fact that we have no idea how markets react to different pieces of information, I don't think that it's actually that reliable moving forward. In fact, a lot of research has shown that Wall Street analysts and analysts in general are not great predictors of stock price. Again, I was in this industry, so I'm part of this group of people who did what I think is still good work. I mean, it's hard work and it's good work. I don't think that they're deliberately trying to deceive anyone. I think it's just really hard to actually predict where a stock is going to go or how the returns are going to start to be shaped by the company.

One story that I always tell and kind of use as a reference to this is that we knew for example that with a lot of these REITs, it's a really actually simple business for many of these REITs. They have long-term leases, there's annual bump-ups, there's very little overhead. I mean, there's really not much surprise, so you can pretty much predict and figure out, project what the cash flow is going to be. And we knew for example that this one REIT was going to announce their earnings and we had pretty good assumptions after talking with management that they were going to have a pretty good quarter, that most people were kind of maybe undershooting where they were going to come in at. And so, sure enough, the REIT announced their earnings and they beat expectations and the stock just absolutely started to tank and I think it was down 4% or 5% that day. And so, the thing that I learned in that experience is that even though say an analyst, we might have known that this was a great opportunity because they had performed really well, they had bought a lot of great property, they had sold some crappy property and this ultimately ended up being a really good quarter for them, but it's the market's reaction that no one predicted and so, at that point, even though it had great expectations and beat expectations, did everything great, like top line growth was great, earnings per share was great, they paid a bigger dividend, I mean, everything you would think would send a stock higher and yet, the markets sold off on the news. And it's just really important to understand how the market reacts to different information is very unpredictable.

And so, in that moment, I realized once and for all, that market's reaction to information is not what we always think. And we see this time and time again, so it wasn't just this one event, but we've seen this with all the big names like Tesla and Google and Facebook and Apple has had it a bunch of times where Apple has just absolutely crushed earnings and beat expectations and yet, the stock sells off because maybe people's expectations were even greater than the analysts on Wall Street. Again, it's not to say that I think that people are doing bad work by writing these reports. I think they're shedding a lot of light on what the company is doing and maybe some of the long-term fundamental value in a company, but as far as short-term buy sell recommendations even on a year or two-year basis, I think it's very hard to do moving forward. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.