[February 2021 update: Citi lost their case, but it's on appeal and not looking good for them. Matt Levine has his normally hilarious take on the ruling. I also learned a new legal doctrine as part of this whole brouhaha. Luckily I learned it from the bleachers.] Back in August of 2020, so roughly 3… Continue reading Citi’s $900M Whoopsie
Author: Signalee
Consistent Options Income
The most consistent options income available to the average investor is selling puts on stocks you want to own. There are fancier strategies out there for generating options income, but they all rely on more precise timing for both price direction and volatility, and more complex trade management. If you want to maximize your chance… Continue reading Consistent Options Income
How to Trade for a Living
Some variation of the following pops up periodically: How can I trade for a living? How much money do I need to start trading for a living? What's the easiest strategy to use to trade for a living? How long does it take to learn to trade for a living? A lot of the answers… Continue reading How to Trade for a Living
New Normal: 2% AVERAGE Inflation
Ah, late Summer, when you start feeling sad that the warm and sunny carefree days are close to an end, the evenings spent on the back patio will soon require a fire and a sweater, and you turn your attention to Fall. But before you can truly start growing that seasonal beard in earnest, there's… Continue reading New Normal: 2% AVERAGE Inflation
Gold: Lighten Up Already
Let me tell you youngsters about the time back in my day, oh so far back in 2011, which was the last time that Gold had a massive rally. This was a time before Robinhood and Dave Portnoy. We didn't have any fancy apps to trade from and commissions sure as hell weren't free. Every… Continue reading Gold: Lighten Up Already
Short Treasuries
Ready for a low-risk and low-return short that you probably won't have to watch too closely, has low carrying costs, and has a built-in ceiling? As long as this time isn't different I think now is a good time take a look at shorting intermediate treasury notes. Unless you've been at a silent retreat with… Continue reading Short Treasuries
Will United Airlines Go Bankrupt?
I'm going to do it: The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines.- Warren Buffett ... if a far-sighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.- Warren Buffett There,… Continue reading Will United Airlines Go Bankrupt?
Beware Simple Heuristics
I love simple heuristics probably more than the next guy, especially in finance. One of my most eye opening experiences during my early years as a credit analyst was when I was sitting in a room with a deal team and they were talking about pricing a new Term Loan B offering. The VP was… Continue reading Beware Simple Heuristics
Bubble Bubble Toil & Trouble
The title of this post was going to be "Financial Media Pet Peeve #342" but I can't resist a Shakespeare reference, especially since we're only a bit past Midsummer's Eve. Anyway... If you consume any financial media whatsoever I'm sure you've seen article after article saying that the stock market is in a bubble, totally… Continue reading Bubble Bubble Toil & Trouble
Welcome All Sports Bettors
There have been more and more articles popping up in the media talking about all the degenerate gamblers opening stock trading accounts and how it won't end well for them. Given the estimated $150B that's wagered in the United States every year it's possible there is enough new money coming into the market to move… Continue reading Welcome All Sports Bettors
Signalee 