Options Simplified

DEFINING RISK, LEVERAGING A MINIMAL AMOUNT OF CAPITAL AND MAXIMIZING RETURN ON INVESTMENT 
WHERE HIGH-PROBABILITY OPTIONS TRADING FOR CONSISTENT INCOME THRIVES IN BOTH BEAR AND BULL MARKETS
Stock Options Dad LLC

September 7, 2020

Introduction:

And just like that the markets are back to their all-time highs and the COVID-19 market sell-off has been erased. Just before the COVID-19 pandemic struck the markets, Ray Dalio was recklessly dismissive of cash positions, stating “cash is trash”. Even Goldman Sachs proclaimed that the economy was recession proof via “Great Moderation”, characterized by low volatility, sustainable growth and muted inflation. Not only were these assessments incorrect but they were ill-advised in what was an already frothy market with stretched valuations prior to COVID-19. I’m sure Ray Dalio quickly realized that his “cash is trash” mentality and public statements were imprudent. The COVID-19 pandemic has been a truly back swan event that n...

September 5, 2020

Advertising Boycott:

Facebook (FB) faced a very public onslaught of companies joining an advertising boycott across its social media platforms. However its latest earnings suggest that this effort may have been largely symbolic and effectively inconsequential to the company’s revenue and growth numbers. The advertising boycott had grown to roughly a thousand groups and multinational companies. This presented a unique challenge which still has the potential to weigh heavier on the company since this boycott will directly impact revenue as overall compliance/security expenses swell. The magnitude of this boycott may inevitably influence the stock price if this movement expands in sheer numbers and duration. If Facebook can appease adverti...

August 29, 2020

Introduction:

How is it possible to capture more premium than what you sold an option contact for? The answer lies in the manner in how you construct your option trade (i.e. put spread vs. custom put spread). A custom put spread leverages a minimal amount of capital, defines risk and maximizes return on investment while enabling traders to capture greater than 100% of the option premium. Custom put spreads are ideal when engaging in options trading for many reasons. This type of trade is great to layer into a long term successful overall options strategy which includes risk-defining trades, staggering expiration dates, trading across a wide array of uncorrelated tickers, maximizing the number of trades, appropriate position allocation a...

August 22, 2020

Introduction:

Disney’s (DIS) impressive streaming numbers have thus far negated the impact that COVID-19 has had on its other business segments, mainly its parks. Disney has had to shutter all of its worldwide Parks and Resorts and ESPN has been hit with the cancellation of virtually all sports worldwide. Advertising revenue coming through its media properties has been hit as companies scale back ad spending. All of its movie studio productions have been halted and movie releases postponed. Despite the COVID-19 headwinds, Disney’s streaming initiatives have been major growth catalysts for the company. Disney+’ growth in its subscriber base has shifted the conversation from COVID-19 to a durable and sustainable recurring revenue streamin...

August 16, 2020

Introduction:

A total of 80 option trades were placed in May, June, July and thus far in August as the markets rebounded after the COVID-19 lows. During this timeframe, all 80 trades were winning trades to lock-in a 100% option win rate with an average income per trade of $189 and an average return on investment (ROI) per trade of 7.5%. After the tumultuous market lows of March and into early April, leveraging a minimal amount of capital, mitigating risk and maximizing returns was essential. An options-based portfolio can offer the optimal balance between risk and reward while providing a margin of downside protection with high probability win rates. As the market continues to rebound, optimal risk management is essential when engaging...

August 3, 2020

Introduction:

A total of 76 option trades were placed in May, June and July as the market rebounded after the COVID-19 market lows. During this timeframe, all 76 trades were winning trades to lock-in a 100% option win rate with an average income per trade of $190 and an average return on investment (ROI) per trade of 7.6%. After the tumultuous market lows of March and into early April, leveraging a minimal amount of capital, mitigating risk and maximizing returns was paramount. The objective of an options-based portfolio can offer the optimal balance between risk and reward while providing a margin of downside protection with high probability win rates.

As the market continues to rebound, optimal risk management is essential when engagin...

July 23, 2020

Introduction:

Leveraging a minimal amount of capital, mitigating risk and maximizing returns is the objective of an options-based portfolio. Option trading can offer the optimal balance between risk and reward while providing a margin of downside protection with a high probability of success. Proper portfolio construction and optimal risk management is essential when engaging in options trading as a means to drive portfolio performance. Key pillars of risk mitigation are rooted in maintaining liquidity, risk-defining trades, staggering options expiration dates, trading across a wide array of uncorrelated tickers, maximizing the number of trades, appropriate position allocation and selling options to collect premium income. Customizing y...

July 15, 2020

COVID-19 Impacts:

COVID-19 ushered in the real possibility of widespread loan defaults, liquidity issues, ballooning credit card debt (as banks hold the liability) and stressed mortgages. To exacerbate these COVID-19 impacts, a delicate balance between interest rates, Federal Reserve actions, potential yield curve inversion and liquidity must be reached. The customer side of the business continues to be worrisome as the duration of this crisis continues to drag on with no signs of slowing. A segment of the consumer base is faced with lost wages and the real possibility of not being able to meet their financial obligations (i.e. car payments, mortgage payments, etc.) which will unquestionably have a negative impact on revenue and earning...

July 9, 2020

Advertising Boycott:

If the Cambridge Analytica fiasco, one mishandled public relations incident after another and numerous earnings calls that went down as some of the biggest blunders in history wasn’t enough, now enter an international advertising boycott. Here we go again, Facebook (FB) investors have been through a lot over the past two years. Now another challenge is confronting the company via an advertising boycott that’s growing into the hundreds of multinational companies. This challenge may weigh heavier on the company since this boycott will directly impact revenue as expenses swell. The magnitude of this boycott will inevitably influence the stock price as this movement grows in numbers and duration. If Facebook can appease...

July 2, 2020

Introduction:

Despite the COVID-19 backdrop, some individual stocks and broader indices have exploded to new all-time highs and retraced previous all-time highs, respectively. Since the depths of the COVID-19 induced sell-off in late March, the markets have experienced an uninterrupted resurgence. It’s easy to become complacent when markets are roaring higher however one must remain disciplined when managing risk especially as it relates to options trading. Mitigating risk and maximizing returns is paramount as the markets rotate out of the depths COVID-19 sell-off. Option trading offers the optimal balance between risk and reward while providing a margin of downside protection and a statistical edge. Proper portfolio construction and o...

Please reload

Noah Kiedrowski

Founder: stockoptionsdad.com

Contact: info@stockoptionsdad.com

 

I'm Noah Kiedrowski, founder of Stock Options Dad LLC. Where it's my goal to simplify options trading. Demonstrating how high probability options trading for consistent income thrives in both bear and bull markets. Options enable investors to mitigate risk and circumvent drastic market moves while generating consistent income in a high probability manner.

All of my trades are risk-defined in order to leverage a minimal amount of capital and maximize return on investment. All performance metrics can be found on the PERFORMANCE tab. For any given trade I target an ROI of 7-15% at an ~85% probability of winning the trade at expiration. In doing so, I typically hold ~50% of my portfolio in cash.

I always strive to trade in high implied volatility environments across a wide array of tickers to maximize sector diversity. Trading across uncorrelated tickers and maximizing the number of trades, as part of the 10 OPTIONS TRADING RULES, is essential for long-term success in options trading.

Did you know that a staggering 92% of actively managed funds do not outperform their benchmark over 5, 10 and 15 year time horizons? Interestingly, over a ~25 year time period from 1983-2006, 39% of stocks in the Russell 3000, comprising the largest 3000 companies in the U.S., were unprofitable investments while 64% of stocks underperformed the index. Shockingly, only 25% of stocks were responsible for all the market’s gains from this ~25 year period! Taken together, investors only have a 36% chance of picking a winning stock that may or may not outperform the broader index. Options trading provides a statistical edge in trading that individual stock investing simply can't offer.

To this end, stockoptionsdad.com is a venue I created to share investing ideas and strategies with an emphasis on options trading. My aim is to empower investors and traders alike to leverage options trading as part of an overall investment strategy. I offer many tutorials, ideas, strategies, timely trades and actionable updates for the retail investor. I also offer TRADE SERVICES for those that want to take their options trading to the next level. My goal is to provide real-life examples of options trading from a peer investor in an effort to demonstrate meaningful portfolio returns while mitigating risk and accentuating returns.

 

Contact us via email:

info@stockoptionsdad.com

team@stockoptionsdad.com

services@stockoptionsdad.com

Now, offering more engagement via social media:

Follow us on YouTube:

youtube/stockoptionsdad

Follow us on Instagram:

instagram/stockoptionsdad

Follow us on Facebook:

facebook/stockoptionsdad

Sign Up

AND STAY UPDATED ON BLOG POSTS AND NEWSLETTERS 
RECENT POSTS
Please reload

  • YouTube
  • Instagram
  • Facebook Social Icon
  • LinkedIn Social Icon