In this episode of "Engineering the Trade," Jermal is joined by Errol to discuss the latest market movements influenced by a flat Core PCE report, suggesting potential for rate cuts. They emphasize the importance of volatility and the trading environment, with hosts sharing their strategies on shorting volatility in stocks like IBM and Oracle. They also touch on positions in Chinese stocks such as Baidu (BIDU) and Alibaba (BABA), noting significant upside activity. The conversation includes insights on managing risk in trading, particularly regarding options strategies.
In this episode of the LIZ and JNY show, the hosts discussed various trading strategies, focusing on managing positions with 21 days until expiration. They explored rolling trades, specifically in SPY and natural gas, emphasizing the importance of account size and risk management. They presented a potential earnings setup calendar using Citigroup (C) and shared insights on navigating volatility. Additionally, Liz demonstrated a ratchet on a losing position in Ethereum (ETH), suggesting an adjusted approach to mitigate risk.
Nick conducted his debut Fast Market session, successfully executing six viewer-suggested trades while markets rallied strongly. The standout trades included a NVIDIA iron condor at $3.33 (20-point wide with 70% probability of profit despite low 8 IV rank), an Intel naked call ratio spread taking advantage of significant call skew, and a Tesla iron condor slightly favoring the bullish bias. Additional fills included ENPH 30 puts at $1.68, PayPal 65 puts at $1.04, and Lululemon 150 naked puts. Nick demonstrated solid execution skills, getting fills at or near mid-market prices while explaining trade rationale and risk management. The session highlighted the transition from Tom's leadership while maintaining the show's educational focus, with markets showing two-sided action as the Dow gained 220+ points but volatility remained elevated heading into the weekend.
Amazon (AMZN) is facing challenges after agreeing to pay $2.5 billion for deceptive practices related to Prime subscriptions, impacting its stock price. Meanwhile, Starbucks (SBUX) is restructuring amidst rising coffee prices, considering store closures and job cuts, and leading to questions about potential trades. IBM (IBM) is experiencing a surge in stock value due to recent developments in quantum computing. Volatility is increasing in the markets, fostering potential trading opportunities.