PSA- Options for All:

Tom McEntee and Vince Lanci  will be hosting a new webcast specifically for options traders with a tentative starting date this Wednesday at noon.

  • It will be audience driven.
  • Tom and Vince will discuss options theory, our own educational experiences, styles, and most importantly
  • WE WILL ANSWER QUESTIONS ON SPECIFIC STOCKS INVOLVING DIFFERENT OPTION  RISK REWARDS.

We guarantee something for all levels of option trader experience:

  1. Structures: Straddle, Strangle, Butterfly, Iron Butterfly, 3- Way, Strips, ButtaFuocos?….
  2. Greeks: vega, delta (3 kinds) theta, rho, skew, leptokurtosis, Gamma….
  3. Esoteric Risks: Stoch Vol, “Wizoo”, Vol Gamma, “MMM”
  4. Models: BS, Cox Ross, PDE, Monte Carlo, Crack Models
  5. Nightmares: 2 tiered stock takeovers, early exercise, Pins,  position limits, exchange margin errors…..

Look for more info in the OppTrader Chat

Intro

This month’s macro report is a must read.  As a contributor, we offer it to OppTrader community. Here are some highlights. Included but not shown are comments on Bitcoin, commodities, the current state of our equity markets and some interesting stocks on the author’s radar – VBL

December TCS Report-PDF

On FAANGs

Frankly I don’t know what’s more frightening – that these stocks lost more than $1 trillion in just a few months or that investors drove them higher by more than $1 trillion in just a few months without any material change in circumstances. Now investors are wrestling with the fact that Facebook is a fundamentally dishonest company……

 

On Energy Blow Ups

Reputedly, world’s largest Oil fund, Andurand Commodities lost 20% on the WTI sell-off. Another manager already reported that he vaporized his investors’ capital, Optionsellers.com, trading natural gas options. The founder of this firm, James Cordier, admitted he managed to lose more than 100%of his clients’ money, leaving them owing more money to their clearing firm.The only way this could have happened was if Mr. Cordier, a so-called options expert, employed leverage and traded naked (i.e. unhedged) options positions, which is incredibly reckless. –

[ EDIT- Larry and I frequently discuss on the AM Road Map the risks and reward profile of naked option selling. While Larry is a biased short player, and I am a long-side player one thing is clear: not having an exit strategy as part of managing  client risk is a logical extension of an advisor with no skin in the game himself – VBL]

On the Global Economy

The global economy – including America – appears to be slowing. Germany and Japan experienced negative growth in the third quarter while China’s growth slowed to 6.5% (which means that the real number was likely lower than that). There are several reasons for this…..

General Electric

A great deal is being written about the possibility of the U.S. corporate bond market being hit by loss of GE’s investment grade bond rating….

California

It seems like the entire state of California will eventually burn down (while it waits for a major earthquake to rip it apart), just not all at the same time, due to a combination of funding and management issues…..

And much more frank observations including TESLA (the Chairman disgusts me), PCG solvency, Bitcoin (not all bad), and some recommended books for the holiday wish list.

Enjoy- VBL

 Full Report HERE