Jade Lizard - Large Profit Range

Using Options to Set Up Huge Profitability Ranges in SPY with Jade Lizard Strategy

Gen Y Finance Guy Investing, Options 6 Comments

Reading Time: 4 minutesMany of you reading this have probably never sold or traded an option in your entire investing tenure. And most probably are still fighting the dogma you have been force fed about options being weapons of mass destruction. Or that options are much more risky than stock. Or that options are purely for speculation and offer huge amounts of leverage. When in fact the original creation of the options market was for that of risk transfer and mitigation. Meaning you can and in my opinion should be using options to reduce your risk in the financial markets. My favorite two strategies for beginners are the short cash secured put and the covered call (link to a guest post I wrote for Financial …

How to use options to make money if the market goes UP, DOWN, or SIDEWAYS

Gen Y Finance Guy Investing, Options 19 Comments

Reading Time: 6 minutesA few months back I published a post about my large cash position. That position has only continued to grow as I find it difficult to put on any new investments at these lofty prices. As I stated previously, I have no idea when the market will turn, all I know is I don’t want to be left holding the bag when it does. That’s not because I don’t think that over the long-term the prices will be higher, but rather because I believe there are much better prices ahead (like around the corner). I also believe that the opportunity cost of sitting on the sidelines (holding out for lower prices) is much lower at this stage in the bull market (now 6+ …

My Trading Story – Podcast Interview with Brandon Clay

Gen Y Finance Guy Interview, Options 4 Comments

Reading Time: 2 minutesI recently had the opportunity to share my trading story with Brandon Clay. You may remember Brandon Clay, he was our first guest featured in our Freedom Fighter interviews. Brandon recently launched his Trading Story podcast where he interviews part time and full time traders. He is personally in the process of living and defining his own trading story. In this interview Brandon asks some great questions to dig into my trading background. The Interview After you listen to the interview make sure you go and check out Brandon’s site and subscribe to his podcast. On his site you will find the show notes to this interview that have all three books I recommended in case you want to check …

Sell Into Strength - Investment Rule #2

Sell Into Strength – Investment Rule #2

Gen Y Finance Guy Financial Freedom, Financial Markets, New Rules, Options, Words To Live By 6 Comments

Reading Time: 4 minutesOver the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. Selling …

Investing with Options – The Covered Call

Gen Y Finance Guy Options 23 Comments

Reading Time: 7 minutesOver the years I have taught many friends and co-workers about stocks and options. This was actually one of many impetuses for me to start this blog. Too many people are fooled into believing that options are too risky and complicated. This just isn’t the case and I want to help take your investing to the next level. If you truly want to be a self-directed investor, you need to understand how to use options in your portfolio. Even the great Warren Buffet uses options in his investing activities and that’s from a guy that likes to keep things simple. I am going to show you how investing with options can be very simple. In February I laid out rule number …

Example of Buying Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, Options 22 Comments

Reading Time: 4 minutes“Dude, suckin’ at something is the first step to being sorta good at something.” -Jake, “Adventure Time” A few days ago I wrote a post laying the foundation for my 10 rules for investing. In rule #1 we discussed what it means to buy into weakness. After some good dialogue with you guys in the comments of that post, it dawned on me to include a real example of what it actually looks like to buy into weakness. It was a comment by Mr. Maroon that helped spark the idea when she said: Enter Mrs. Maroon When we first started aggressively trying to save money for investments and actively watching our balances, we agreed that the very best approach was to …

Buy Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, New Rules, Options, Words To Live By 24 Comments

Reading Time: 5 minutesOver the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. (Note: …