Tag: licensed financial adviser
Behavioural Biases That Impact Asset Allocation Decisions
Contents Introduction: How Emotions Influence Investment Choices Overconfidence Bias: Believing You Know More Than You Do Loss Aversion: The Fear Of Losing Money Recency Bias: Overemphasizing Recent Events Herding Behavior:…
Read More »Asset Allocation by Age: A Guide to Investing Over Time
The Importance Of Age In Asset Allocation Asset allocation—the way you distribute investments across asset classes like stocks, bonds, and cash—plays a pivotal role in shaping your portfolio’s success. However,…
Read More »The Calendarized 1-1-2 Option Strategy
A previous article discusses Tom King’s 1-1-2 option strategy. He has other variations of that category, such as the 1-1-1 and the “long-term 1-1-2”. The 1-1-1 and 1-1-2 are part…
Read More »How Asset Allocation Impacts Investment Returns and Risk
Asset allocation is the cornerstone of portfolio management, directly influencing both the potential returns and the risk profile of an investor’s portfolio. At its core, asset allocation involves dividing investments…
Read More »What is the CVaR Metric in Options Trading?
CVaR is a metric found in some trading platforms, particularly the Tastytrade platform. It stands for “Conditional Value at Risk”. The “a” for the preposition “at” is lowercase. Contents Example…
Read More »Turning a Butterfly into Black Swan Hedge
Let’s look at a hypothetical example where a broken-wing butterfly options structure can be turned into a black-swan hedge. In the process, we can explore the concept to see if…
Read More »Don’t Get Screwed Trading the Poor Man’s Covered Call
The Poor Man’s Covered Call (PMCC) is a strategy that mimics the traditional covered call but requires significantly less capital. Instead of owning the underlying stock, traders buy a long-dated…
Read More »How To Trade The Inverse Cup And Handle
The Inverse Cup and Handle is the bearish counterpart to the popular Cup and Handle setup. The chart pattern is just as simple; it consists of a large inverted “U”…
Read More »Blocks, Sweeps, and Splits: Do You Know What These Are?
Blocks, sweeps, and splits — oh my. More new terms to know. Contents Block Order Sweep Split Order Summary These describe how orders are consolidated in an options order flow….
Read More »What Is The Theta Of A Credit Spread?
Contents When Do Credit Spreads Become Theta Negative What About Debit Spreads? Conclusion If you answer that credit spreads have positive theta, that is only partially correct. It depends on…
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