Options Simplified

OPTIONS ARE A BET ON WHERE STOCKS WON'T GO,
NOT WHERE THEY WILL GO
WHERE HIGH-PROBABILITY OPTIONS TRADING FOR CONSISTENT INCOME THRIVES IN BOTH BEAR AND BULL MARKETS

February 4, 2020

Introduction:

As 2020 unfolds and the markets continue to break through record highs, investors should heed these lofty levels. We’re in the longest bull market in history and the U.S. has started and ended a decade without a recession for the first time in history. By nearly all measures, these markets are overvalued with stretched valuations.    

Deploying a put spread strategy is a great way to define your risk while leveraging a minimal amount of capital to maximize returns. Whether you have a small account or a large account, a put spread strategy is an effective way to limit risk with a high probability of success. Trading options on stocks like Expedia (EXPE), Tesla (TSLA), Ulta Beauty (ULTA), Apple (AAPL), Disney (DIS),...

January 5, 2020

Introduction:

2019 has shaped up to be an historic year for the stock market indices. The S&P 500 posted its fourth best annual return in over 20 years, coming in at a ~29.5% return. Only two other years have outpaced these 2019 returns. These occurred in 1995 and 1997 posting returns of 34.1% and 31.0%, respectively. 2019 was a unique year on multiple fronts, most notably because the market returns outpaced even the most bullish forecast by any Wall Street analyst. The markets roared higher in the face of impeachment proceedings, U.S.-China trade war, Federal Reserve actions, inverted yield curve and slowing economies abroad. Furthermore, for the first time in history, the U.S. economy has started and ended a decade without a recession...

November 10, 2019

Introduction:

2019 has ushered in one of the most surprising bull markets that nearly no one saw coming. The vast majority of Wall Street analysts underestimated the strength of this bull market as we enter into mid-November. Expectations for 2019 were largely muted when factoring in a slew of potentially negative economic issues such as the U.S./China trade war, Brexit, inverted yield curve, potential recession, Federal Reserve actions and the presidential impeachment efforts. Despite all of these headwinds, the indices continue to post record highs with the Dow Jones and S&P 500 notching gains of 18% and 23%, respectively.   

This market has been dubbed the “most hated bull market in history”, illustrating the point that the abili...

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Noah Kiedrowski

Founder: stockoptionsdad.com

 

I'm Noah Kiedrowski, founder of stockoptionsdad.com. Where high probability options trading for consistent income thrives in both bear and bull markets. Options are a bet on where stocks won't go, not where they go. Enabling investors to mitigate risk and circumvent drastic market moves while generating consistent income in a high probability manner.

The vast majority of my trades are risk-defined while leveraging a minimal amount of capital in order to maximize return on investment. My average income per winning trade exceeds $100. For any given trade I target roughly 10-15% ROI with a delta of ~0.15 or ~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 at an ~85% probability of success. Trading across uncorrelated tickers and maximizing the number of trades is essential for the probability of success to play out.

 

Did you know that a staggering 92% of actively managed funds do not outperform their benchmark? Interestingly, 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 1983-2006! 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. 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:

stockoptionsdad@gmail.com

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