tastylive: Confirm and Send

The market displayed mixed activity, with the S&P 500 (SPX) up six points and the NASDAQ (COMP) gaining 48, while the Russell 2000 (RUT) and Dow Jones Industrial Average (DJIA) fell slightly. Discussions revolved around strategies for hedging defined risk trades, with emphasis on adjusting positions based on market volatility. The speakers explored the merits of buying protective puts during low implied volatility while highlighting diverse stable coin characteristics tied to short-term treasury assets.

In this episode of "Confirm and Send," the discussion centers around trading strategies, particularly in volatile markets. Tom highlights the challenges of managing defined risk trades compared to undefined risk trades, emphasizing the difficulty of defending positions when volatility is low. He also discusses strategies for handling losing scalps, such as selling calls against futures to reduce delta exposure. The conversation wraps up with insights on vertical spreads, particularly regarding implied volatility ranges, and concludes with caution against predicting market downturns.

The S&P futures traded up 30 handles at $55.62, just below session highs of $56.65. Nasdaq climbed $123, with both indices showing strength throughout the morning. Russell gained $8 while the Dow lagged, down $17 after weakness yesterday. VIX futures rolled to the new front month, trading at $18.29, down $0.15 and sitting at session lows. Bonds remained unchanged at $117.04 after ranging between $116.22 and $117.09. Cryptocurrencies showed momentum with Bitcoin up $2,700 to $113.04 (1.5%) and Ethereum rising $68. Oracle was the standout stock, surging approximately $80 to $318 per share. Tom and Tony discussed covered call management strategies, rolling tactics for positions in trending stocks, and backtest results for premium-selling strategies versus buy-and-hold approaches.

Sosnoff and Battista discuss market conditions, with indices mostly positive except for the Russell, and volatility showing slight movement. Sosnoff mentions taking short positions to scalp the market. In viewer questions, they clarify that in-the-money short calls at expiration aren't automatically assigned, as buyers can submit "do not exercise" instructions. For pre-earnings positions that haven't decreased in value, Sosnoff typically adjusts by widening strikes rather than exiting completely. The hosts explain why they prefer trading in high implied volatility environments—not because it improves probability of profit, but because successful trades yield greater returns for the same risk. They dismiss trading logs as unnecessary for active traders who naturally remember their positions. Regarding correlated assets, they focus primarily on directional relationships rather than magnitude of moves. When discussing interest rates, they note that while rate cuts affect the short end of the yield curve, traders typically watch longer-term instruments like ZB and ZN futures.

In this episode, Tom and Tony discuss current market trends, including a rise in major indices and volatility's decline. They analyze the implications of VIX fluctuations on buying power, noting a potential increase of up to 50% if the VIX were to double. The conversation shifts to trading strategies, specifically the merits of using poor man's covered calls versus traditional methods. They also express caution regarding insider buying signals and stock splits affecting option trading dynamics.

In the latest discussion, Liz and Jenny delve into various trading strategies, emphasizing the importance of managing extrinsic value when rolling options, especially when rolling for a debit. They highlight that theta targets should be established at portfolio entry for longer-dated options, noting that theta increases as expiration approaches. The conversation also touches on layering zero DTE trades and the significance of liquidity in trading decisions. Ultimately, they advise traders to avoid stocks that consistently result in losses.

The discussion delves into current market conditions, highlighting movement in major indices such as the E-mini S&P 500 (ES) and the NASDAQ (NQ), driven by gains in Google (GOOGL) and Apple (AAPL). Tom and Tony analyze trading strategies, emphasizing the importance of implied volatility and proper risk management in option trading. They address viewer questions regarding trading metrics, expressing a preference for looking at theta relative to net liquidation instead of buying power usage. The conversation reinforces the relevance of quick decision-making in trading.

Tom and Tony addressed viewer questions about stop-limit orders in zero DTE trades, gold futures contract selection peculiarities, and strategies for laddering short put positions across multiple months with decreasing strike prices when building bullish positions.

In this episode Tom snd Tony analyze current market conditions, noting a decline in major indices, including E-mini S&Ps (ES) and NASDAQ (NQ). They discuss the crowded AI investment landscape and excessive valuations in the digital asset space, particularly Bitcoin (BTC) and Ethereum (ETH). Viewer questions cover rolling covered calls, managing delta in short positions, and strategies following binary events like Fed announcements. They also emphasize the importance of staying focused and maintaining flexibility in trading strategies.

In this episode, Tom and Tony discuss market dynamics, particularly the volatility in S&P and NASDAQ indexes, while emphasizing the current low volatility environment. They address questions on trading strategies, including buying power allocation and futures trading. The conversation also touches on the liquidity of VIX futures versus S&P options. They recommend caution in capital deployment and suggest that traders remain prepared for potential market movements.

Low volatility dominated markets with E-mini S&Ps down $2.25 at 64.80. Trading volume remained subdued at 800,000 contracts in what Tom and Tony described as a "creepy quiet" environment. All major indices showed minimal movement, with bonds dropping 17 ticks in a notably bearish move. Bitcoin traded just under $112, with Tom predicting a potential decline to the low 80s or high 70s. The cryptocurrency had previously tested these levels in April but quickly rebounded.

E-mini S&Ps dropped $4.50, continuing weakness from yesterday's session when markets sold off about 20 handles near the close. The overnight trading range matched the expected full-day range of $33, signaling potential volatility ahead. Volatility edged up 13 cents to 17.15 after reaching 17.45 overnight. Bitcoin weakened to $110,600, down about $1,000 from recent highs, while Ethereum showed relative strength. Oil retreated $1 after several days of gains, and gold climbed $5. During the Confirm and Send segment, viewers asked about technical indicators, zero-day SPX trading parameters, market reaction to Powell's rate cut comments, and concentration risk in the Magnificent 7 stocks.

Markets traded lower with E-mini S&P 500 futures down 19 points (0.33%) after a 35-handle overnight move. NASDAQ fell 88 points, Russell down 11, and Dow down 142, all declining approximately one-third of a percent. Bitcoin dropped over $5,000 (4.5%) to early July lows, while Ethereum slipped 2%. The pullback follows Jerome Powell's Friday speech signaling a September rate cut, which initially propelled markets higher. Futures currently price an 83% probability of a 0.25% reduction. Traders anticipate choppier market action until NVIDIA (NVDA) reports earnings Wednesday after close. Natural gas continued its decline, falling another 1.5% to new lows at $2.76. Chinese stocks showed mixed results, with PDD reversing early gains to trade lower while Alibaba (BABA) and Baidu showed modest strength.

The market opened with weakness across indices, with E-minis down 27, NASDAQ down 104, Dow down 179, and Russell down 15 - all approximately 0.4% lower. Volatility futures were up 35 ticks. In the Confirm & Send segment, Nick and Mike clarified that "trading small" means risking 1-3% of account value per position (ideally under 5%), while "trading often" happens naturally over time. They explained why they prefer diagonal spreads over call debit spreads, and emphasized delta as more important than theta for portfolio management. For a $100,000 account, maintaining plus or minus 500 deltas represents a neutral position, with potential to lean 1,000-1,500 deltas long or short based on market outlook. Nick and Mike also advised a 15-year-old trader to diversify their $5,500 account with bullish put spreads, bearish call spreads, and neutral iron condors, while suggesting two to three times credit received as a reasonable stop-loss for unmanaged positions