Market Musings

It's where I share all my best stuff about building wealth using simple, safe and stable options trading strategies.

Main Street's Option Market Wizards: Tony

Almost every trader knows about Warren Buffett, George Soros, Ray Dalio, Bill Ackman, or other billionaires Wall Street stock wizards.

But what about the real traders from Main Street?

Are there any success stories worth emulating?

Find out more as I answer this question by conversing with top real traders that I had the good fortune of either mentoring or working with.

This special series is called "Option Market Wizards" where I will introduce you to some good traders who started with...

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The Power of Option Gamma

gamma traders insights Mar 09, 2021

Here is an application of Gamma in play with regards to "throwaway trade".

Just observe how option prices are changing in the last 30 seconds before the market close.

Use the comment section below to share key points you picked-up, or questions you have or to share thoughts on how we can make it better for future episodes.

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Marvelous Monday - TSLA & ARKK

What a week! We have incredible market movement during last week!

SPX crashed from an all-time high of $3914 to about $3723. A movement of almost 200 points! Around Friday, SPX moved from around $3730 to $3840! 


We can see similar movement on NDX as well. There is a Head & Shoulder forming on NDX for those who know about technical analysis. 

Even though NDX rallied on Friday, I will still pay close attention to the price level of around $12,800.

1 company that has...

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Marvelous Monday

Wow, what a marvelous Monday!

Dow Industrial rallied almost 2%, S&P500 rallied almost 2.5% and Nasdaq was up 3%!  This rally came on the heels of a turbulent week when Nasdaq, tech stocks and growth stocks were on  a downward trend.

So Friday hugely down when S&P dropped almost 50points in the last minutes of closing and Monday was hugely up when S&P rallied almost 2.5% in day!!!

What do you make out of it?

There were essentially two camps. 

One camp is that of...

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Meet Cecilia - OptionPundit's Newest Rising Star!

rising stars Jan 18, 2021

Meet Cecilia - Our Newest Rising Star.

Cecilia is a mother of 2 from Kuala Lumpur, Malaysia, and working as a concept engineer in the Oil & Gas industry. Cecilia has some prior background in value investing. However, with her responsibilities as a mum, while juggling her work in a fast-paced demanding Oil & Gas industry, she finds it hard to find time to research companies. 

In the midst of finding another method, her friend Dianna recommended her to explore...

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The Butterfly Effect

How you get better at options trading or for that matter any new specialized skill  largely depends on your attitude towards learning.

Age old wisdom says "to stop learning is to stop growing". However, when faced with something new, unfamiliar subject, our mind's first reaction is to resist the change or go back to our comfort zone.

Let me tell you a beautiful short story that explains the importance of "the process" of learning an growing.

The Butterfly

Once a little boy was playing...

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Meet Sky - OptionPundit's Newest Rising Star!

rising stars Jan 10, 2021

Meet Sky - Our Newest Rising Star.

Sky is from Singapore and has been investing for more than 5 years prior to coming in contact with OptionPundit. Sky primarily focused on stocks. After initial unsuccessful attempts with options almost a decade ago, he restarted trading options actively just a few years ago.

In 2020, after attending the Options Success Formula (OSF) program at OptionPundit, Sky managed to generate over US$20,000 profit on his portfolio!

Watch the video to...

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The stock market is in a 'fully-fledged epic bubble' – Warns Jeremey Grantham

It's a full fledged epic bubble, writes one of my favorite investors Jeremy Grantham of GMO.

“The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble. Featuring extreme overvaluation, explosive price increases, frenzied issuance, and hysterically speculative investor behavior, I believe this event will be recorded as one of the great bubbles of financial history, right along with the South Sea bubble, 1929, and 2000.” 

He further...

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Meet Wenya - OptionPundit's Newest Rising Star!

rising stars Jan 03, 2021

Meet Wenya - Our Newest Rising Star.

Wenya hails from Singapore. As a soft spoken and unassuming person, Wenya, has worked in the IT industry for the past 10 years and was totally new to the financial markets prior to coming in contact with OptionPundit. 

In 2020, after attending the Options Success Formula (OSF) program at OptionPundit, Wenya started to incorporate OSF mechanics into her trading style and has made 60% return on her portfolio over the past four and a...

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Why I Opened a Bullish Options Trade on Alibaba (BABA)

baba call option Dec 29, 2020

On 24 Dec 2020, I shared a trade idea on BABA on our telegram community channel (if you are not a member yet, join our community for FREE).

Soon after the post, I received a note from one of our readers to help him/her understand why I took that trade (btw, thank you my reader for your kind words):

 

I decided to answer this via detailed post as many other readers might have similar question.

Here are the trade details:

  • Underlying stock: BABA
  • Type of Option: Call...
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