How to Take Advantage of Volatility We all know options can make profit when the price of the underlying stock or ETF rises, declines, or goes sideways. However, on top of this, they can also make you money if the implied volatility of the underlying asset rises or declines. Here are 2 trades you can use to take advantage of this and precisely when to use them. Rising Volatility Rising volatility causes the prices of options to rise. This is measured by Vega which tells you for every uptick in Implied Volatility or IV, how much with the price of the option will rise. My favorite trade to take ..read more

THE WEALTH FORMULA I’ve been called “cold and calculating”, but the truth is I simply recognize patterns, love numbers, and predicting future prices using models and frameworks that I’ve built over time. I will often share these numbers and predictions with confidence which makes me seem cold. My wife suggests I might be “on the spectrum”. But I have yet to be clinically diagnosed. Life is a journey of discovery and finding your best future self; even better if you can do it with someone you love and trust. Well, in my opinion, wealth is just one part of this puzzle, and I love solving it. I s ..read more

Ford is pumping the brake on making electric cars and focusing on hybrid cars for North America. They are delaying making their 3-row EV SUV and their new “T3” pickup truck. The delay is 2-3 years for each model. Ford is the second-biggest electric car brand in the U.S., after Tesla. But people in North America aren’t buying electric cars as fast as expected. This could be because there aren’t many places to charge them and they’re also expensive. Ford’s CEO, Jim Farley, says they want to make electric cars that make money and are good for the environment. They’re going to make a big electric ..read more

Tesla was the biggest loser in Q1 During Q1 2024, Tesla experienced a significant downturn in stock performance, making it as the primary casualty within the S&P index. Market analysts attribute it to the anticipated release of disappointing production and delivery figures by Tesla for the quarter. Additionally, the implementation of price reductions across various Tesla models is expected to impact corporate profitability. According to data from FactSet, 11 analysts covering Tesla anticipate the company to announce approximately 457,000 deliveries for the period. This projection only refl ..read more

When it comes to investing and finance, there are 2 things I look for: the pricing power of the company and does it have a liquid options market. When I can combine these two together, I can make better trading and investment decisions. Let’s dig into each: The Power to Price Your Product Investors who identify companies with robust pricing power is akin to discovering hidden gems – enterprises poised for sustained growth and profitability even in the face of market volatility. This can allow the company to get through tough economic times and increase profitability during the good times. Deci ..read more

Apple Cancels Their EV Project Apple has decided to stop working on its electric car, which they started about ten years ago. Their stock went up 0.7% after this announcement. Some employees who were working on the electric car will now work on artificial intelligence instead. Makes sense as this is more inline with their total product offering. Because interest rates have gone up to control inflation, people aren’t as excited about buying electric cars, which tend to be more expensive. This has caused some companies to cut jobs and make fewer electric cars. Big car companies, like Tesla, are ..read more

Nvidia Makes the Pass into #3 Last year saw a huge surge in artificial intelligence (AI) development, and the momentum continues. This week, Nvidia ($NVDA) climbed to become the third most valuable publicly traded company in the U.S. based on market capitalization, surpassing Amazon. On Wednesday, Nvidia’s stock rose by over 2% to reach $739 per share, pushing its market cap to $1.83 trillion. At that time, Amazon’s market cap was around $1.78 trillion, and Alphabet ($GOOGL), Google’s parent company, stood at $1.82 trillion. Nvidia now only trails Apple ($AAPL) and Microsoft ($MSFT). Not too ..read more

How Millionaires Manage Risk You have to know that millionaires and deca-millionaires are extremely good at managing risk while knowing where to allocate their resources to maximize a return. They want to bend the risk/return curve to their advantage. Well, let me show you how I do it. But first, let’s review the big news that happened in the market this week. Disney Finding that Magic Again Walt Disney’s stock prices shot up this week because they reported excellent earnings for the first three months of the year and revealed some big new deals. One of these deals is an exclusive show with Ta ..read more

How Millionaires Supplement Their Income It’s widely known that millionaires employ straightforward trading strategies to enhance their income. Typically, they rely on one or two primary sources of income and seek uncomplicated investment opportunities to augment their financial portfolio. This creates a powerful cycle of wealth accumulation that gains momentum and becomes unstoppable. Before delving into the strategy, let’s first review the recent market developments of this week. Walmart Crushing It Walmart shared big news this week! They’re doing a three-for-one stock split, making shares m ..read more

Tesla in a Race to Zero? Make no mistake Tesla’s are FAST, I own a Model Y Performance and the acceleration is strong enough to put a massive smile on your face. The saying is true, Tesla’s win the “smiles per mile” metric. However, this week, the electric vehicle company faced disappointing earnings and issued a concerning warning about its 2024 sales prospects. Tesla has been in direct competition with other global electric vehicle (EV) companies, such as China’s BYD and Detroit-based automakers GM and Ford. Despite implementing price reductions to stay competitive, Tesla lost its positio ..read more