The Real Pain Trade

Hello All,

It’s been a rather quiet kick off to the week in regard to economic data, but in regard to the indices, we saw quite the factor-unwind as Momentum names / YTD winners were sold whereas YTD losers / Cyclicals were bought heavily… because of the unwind, both the Dow & Small-caps are leading the way in terms of performance on the week whereas Spooz is up just 43bps & the Nasdaq is surprisingly the worst performer on the week, as again, YTD winners / Momentum names were generally sold heavily today which has led the Q’s to kick off the shortened week -23bps.

In April, we wrote about hard assets & the structural framework behind hard assets given recent events & future outlook along with some historical perspective as well… you can check it out below for those whom may have missed.

We also published the follow up educational piece which has been highly requested and majority of the topics covered were all suggested by you all, so I hope you find good benefit.

For those who may have missed, a link to Educational Piece Part: Deux can be found here.

For those who may have missed the first educational piece, I included the range of topics covered below along with a link to the piece for those who would like to go back and read:

- General background / knowledge on all option strategies

- In-depth talk on risk / reversals & how to go about expressing / utilizing them

- Options Structuring

- When to used naked calls / puts vs. spreads

- Choosing expiration dates

- Identifying key pivots / supports / resistance zones

- General briefing on stock gaps

- What to look for in regards to fundamentals

- Implementing fundamental / macro / technicals into a trade

- Hedging

- Creating risk/reward setups

- Taking profits / managing losses

- Overall Process

- Book recommendations

A link to the first educational write-up can be found here.