Blockhead Traders Weekly: Recent Episodes
Blockhead Traders
In this week’s episode, sprocket888 celebrates the 260th weekly episode. This milestone denotes 5 years of continuously uninterrupted weekly releases of the Blockhead trader content. Along with this major milestone, sprocket888 discusses what is next for the channel. Looking back over the past five years, all the original goals have been achieved, and a new… Read More »Times are a-changin’: The end of the five-year run, what comes next?
In this week’s episode, sprocket888 discusses some of his current market musings. He feels the market is at a fork in the road, and with mounting tensions in a few areas, it could uncoil in either an up or down direction. As the price action debates this, he is sitting on the sidelines, gathering some… Read More »Market Musings: Sprocket888 covers items he is focused on right now.
In this week’s episode, sprocket888 takes a look at a long-running covered call trade he has had going. This covered call, while a winner, has really felt like a loser. This is one of the drawbacks to a covered call. In some cases, the price of the underlying will rocket through your strike and never… Read More »Covered Calls: They can feel like losing, while you are winning.
In this week’s episode, sprocket888 shares his thoughts on current market conditions and associated valuations. He has largely been on the sidelines in trading, based on his perception that the market is starting to look a bit ‘toppy’. He is doing a few things, and he shares his thoughts in this week’s episode. Join Blockhead… Read More »…what goes up…: Sprocket888’s perspective on the current market
In this week’s episode, sprocket888 continues the investing miniseries. This is the fifth and final installment in the series, which focuses on tying together all the previous episodes. In this finale, sprocket888 demonstrates how he applied the previous episode’s topics to this retirement portfolio in a practical, tangible, real-world example. The most important part of… Read More »Bringing it all together: Investor Miniseries Episode 5.
In this week’s episode, sprocket888 continues the investing miniseries. This is the fourth installment in the series and focuses on measuring the portfolio’s performance, both historically and in forecasts. This step of evaluation is crucial, whether you are managing your portfolio yourself or paying someone to do it for you. The principle here is to… Read More »Measure portfolio performance: Investor Miniseries Episode 4
In this week’s episode, sprocket888 continues the investing miniseries. This is the third installment in the series and focuses on synthesizing the material from the first two episodes to begin discussing how to put the funds to work. The market is a large, diverse place with many investment options. However, if you start with a… Read More »Put the money to work: Investor Miniseries Episode 3
In this week’s episode, sprocket888 continues the investing miniseries. This is the second installment in the series and is focused on risk. Risk is a key thing to understand. Two fundamental understandings are required. The first is: what are the risks associated with various financial products? The second is what tolerance you, as an investor,… Read More »Understanding Risk: Investor Miniseries Episode 2
In this week’s episode, sprocket888 kicks off a miniseries on investing. This is a 5-part miniseries focused not on the usual trading topics but on how to get started investing. Investing is a slower process for building wealth. This miniseries is aimed at people who have not yet started investing or have started but want… Read More »Just Get Started: Investor Miniseries Episode 1
In this week’s episode, sprocket888 continues the theme from last week about the end of the 2025 trading year and the tax implications. In this episode, he dives into the details of what his plans are for 2026. He discusses both Mark-to-Market Accounting and Trader Tax Status explicitly. These two items are mutually exclusive and… Read More »The 2026 Plan: Sprocket888’s plan for 2026 and Taxes
In this week’s episode, sprocket888 continues the theme from last week about the end of the 2025 trading year and the tax implications. In this episode, he dives into the details of the position $CIEN. This position has a substantial unrealized loss. As the tax year concludes, sprocket888 discusses the implications of booking the loss… Read More »Washing the harvest: Tax loss harvesting and wash sale considerations.
In this week’s episode, sprocket888 and viperxl007 discuss taxes and the considerations to keep in mind during the month of December. There is consideration to give throughout the year, but December is a critical time because it is the last month to book trades that will impact that tax year. This is something that sprocket888… Read More »Taxes: Something to remember in December.
In this week’s episode, sprocket888 does a quick run-through of some of the impacts of high volatility. In and of itself, volatility is neither good nor bad. Volatility is a measure of how much price swing potential is contained in the underlying being measured. It is essential to understand this mechanism as it can directly… Read More »Volatility: Price, here in an instant, gone in a flash.
In this week’s episode, sprocket888 is joined by viperxl007. They discuss the recent rally in equities and offer their opinions on whether the man with a big red suit might be coming to town soon for a year-end rally. After that, each one talks about how their recent trading action has been going. Viperxl007 has… Read More »Flow Trading: A new approach to trading for viperxl007.
In this week’s episode, sprocket888 does a solo show, taking a look at some upcoming earnings. In keeping with the recent episode that discussed how to “Get paid for a limit order,” he takes a look at how to take advantage of a very volatile earnings announcement. The case in this episode concerns $GTLB, but… Read More »Get paid to go long: Looking at $GTLB around earnings.
In this week’s episode, sprocket888 is joined by viperxl007. They discuss the state of artificial intelligence and the potential impact on employment, the economy, and the market. They frame the discussion by first visiting centuries of technological innovation to remind the viewer that change is always feared, and that it never results in anything close… Read More »Will AI take your job?: Probably, but not how you might think.
In this week’s episode, sprocket888 discusses how selling PUTs to enter a long position is similar to adding sprinkles to your ice cream. One thing is for sure, you will never buy at the pure bottom when you enter a position. Considering this fact, this episode is dedicated to discussing an alternative long entry strategy.… Read More »Always choose sprinkles: If you are going to go long, consider selling PUTs to open the position.
In this week’s episode, sprocket888 discusses what a health savings account is and why everyone should have one. The health savings account, or HSA, is likely THE most tax-advantaged account that one can hold. The HSA is likely the first type of account that individuals should consider funding as they prepare for retirement. Sprocket888 begins… Read More »Health Savings Account: The little account that can
In this week’s episode, sprocket888 discusses a monster loss that he took on $FI. Every time you have an open position in the market, there exists the chance that a monster unexpected move will occur. There are many steps that you can take to reduce this probability, but you can never make it zero. This… Read More »Not always sunshine & roses: A look at a monster loss in $FI
In this week’s episode, sprocket888 and viperxl007 discuss some thoughts around today’s Middle Class. The Middle Class rose to prominence after WWII and has taken on various characteristics over the years since then. The traders take a look at what is being redefined today around the Middle Class and share their thoughts and perspectives. One… Read More »Today’s Middle Class: Is it disappearing or being redefined?
In this week’s episode, sprocket888 and viperxl007 take a beginner’s look at price action. Price action is a deceptively simple component of technical analysis. It seems simple, but it takes a good bit of practice to become more fluent in it. It is about looking at a chart and being able to spot high-level trends… Read More »Price Action: An Intro to a foundational part of technical analysis.
In this week’s episode, sprocket888 and viperxl007 do a quick recap of their most recent trades. Viperxl007 has been building up his mechanics and took a shot at a lottery ticket. This did not really work out the way that he had hoped, but he was prepared and ready for the outcomes. Sprocket888 closes up… Read More »Double Update: sprocket888 and viperxl007 cover their most recent moves.
In this week’s episode, sprocket888 runs a solo show. This is a brief and straightforward episode where sprocket888 takes a look back at his four most recent trades. Two of these have been fully concluded, and the other two have only been opened so far. All four of these are earnings trades where sprocket888 is… Read More »Update from sprocket888: Four most recent trades, and the accompanying logic.
In this week’s episode, sprocket888 is joined by viperxl007. Viper has been working on developing and practicing a mechanical approach that takes a daily trade on the $SPY. It has obvious objective entry and exit rules. As of the recording of this episode, viperxl007 has logged 31 of these trades, and it is starting to… Read More »The Daily Chores: A detailed look into viperxl007’s daily $SPY trade
In this week’s episode, sprocket888 takes a look at everyone’s favorite topic, taxes. When you are trading, nobody is looking out for you to make sure that you are paying the appropriate taxes. Neglecting this topic can lead to very steep tax bills and potentially hefty fines. Accounting for this is pretty straightforward. The only… Read More »Taxes: Failing to plan, is planning to fail.
In this week’s episode, sprocket888 discusses a recent situation in which he panicked. This panic put sprocket888 in a worse situation than if he had kept his emotions in check and executed the plan. Often, in videos, it can appear that trading is always robotic, but in reality, maintaining everything totally robotic all the time… Read More »I Panicked: Panic response will always make a bad situation worse.
In this week’s episode, sprocket888 and viperxl007 discuss the book “Trading in the Zone by Mark Douglas”. In a fireside chat style, the traders discuss the premise of the book as well as the highlights that each got when reading the book. The book is fitting for all audiences. Both sprocket888 and viperxl007 agree that… Read More »Fireside Chat: Sometimes what is in your head can make a difference
In this week’s episode, sprocket888 provides a detailed examination of elevated volatility and its impact on options prices. Understanding the effect that elevated volatility has on options pricing is foundational to understanding the potential outcomes. In this episode, sprocket888 takes an objective look at two situations: one where the option chain has elevated volatility and… Read More »Elevated Volatility: Understand the impact before fully engaging.
In this week’s episode, sprocket888 is joined by viperxl007. They each recap one area from last week’s trading. For sprocket888, he goes through how he determines the strategy to deploy for selling premium. This means selling just a Put or selling a Put and a Call. It is a visual inspection that he does to… Read More »Searching and Learning: Sprocket888 is searching and Viperxl007 is learning.
In this week’s episode, sprocket888 is joined by viperxl007. Together they take a look back at the most recent trading week and each pick a topic to give a callout to. For sprocket888, he emphasizes that sticking to a proven strategy will ultimately lead to success, even if the journey is painful. Viperxl007 sees a… Read More »Trading callouts: A detailed look at two aspects of sprocket888 and viperxl007’s trading.
In this week’s episode, sprocket888 performs a solo show. In this episode, sprocket888 details the typical time commitment he puts forward to his trading. In addition to the time he discusses the content of this time as well as the why and how it might be adapted to others. It is important to develop habits… Read More »Real Time Commitment: A detailed look at sprocket888’s time commitment.
In this week’s episode, sprocket888 is joined by viperxl007. They take a quick retrospection on the recent weeks’ trading action and chime in on how things went down for them. Sprocket888 touches on a few of his in-flight earnings trades. Most of these trades are too early to determine whether they will win or lose.… Read More »Retrospection: A look into the recent trading of sprocket888 and viperxl007.
In this week’s episode, sprocket888 performs a solo show. This show is kicking off the upcoming quarter earnings, and as such, it was time to do a refresher on the strategy and mechanics of the earnings strangle. This is the style of trade that is Sprocket888’s favorite trade to make around the earnings announcement. Not… Read More »Earnings Premium: A refresher on selling premium in a highly probable manner.
In this week’s episode, sprocket888 is joined by viperxl007, and they take a look at a new trade that viperxl007 is trying out. This trade is a one-week trade on the $SPY. The short-term (1 DTE) option is sold, and then the same strike is bought one week later. Viperxl007 discusses what he likes about… Read More »A Daily Dose: A daily calendar spread on the $SPY for income
In this week’s episode, sprocket888 is joined by viperxl007, and they are taking a look at tokenization. There are two areas that they examine. The first is the GENIUS Act, currently going through Congress here in the US. This act sets a lot of the groundwork and rules around tokenizing items that are backed by… Read More »Tokenization: Your dollars and your stocks
In this week’s episode, sprocket888 takes a look at a recent earnings trade on $FDX. Viperxl007 and Sprocket both took out a trade on the underlying; both were trading to short volatility, and both should have made a significant profit. However, only one came out as a winner in the trade. The reason may surprise… Read More »You got options: In your trades and your choice of brokers.
In this week’s episode, sprocket888 takes a look at two earnings trades and discusses whether you should close them or let them ride to expiration. As you can imagine, there is no one-size-fits-all answer to this. The two trades in this episode are on $FDX and $NKE. In the case of $FDX, there were still… Read More »Post Earnings: Should you close or let it ride to expiration?
In this week’s episode, sprocket888 and viperxl007 examine the concept of a market edge. This is something that you might have heard people speak about, and you might wonder what it is and whether it’s something an average retail trader can have. The short answer is ABSOLUTELY. In this episode, Sprocket and Viper discuss how… Read More »A Market Edge: What is this & Can the average retail trader have one?
In this week’s episode, sprocket888 and viperxl007 accomplish two points. The first is to examine how a recent calendar spread earnings trade has performed for viperxl007. Then, using that same trade, they examine how two different brokers might impact the outcome of that trade. Viperxl007 placed the trade in Robinhood, and Sprocket888 placed the trade… Read More »Broker Equality: Are all brokers created equal?
In this week’s episode, sprocket888 and viperxl007 check in on the experimental calendar spread strategy that viperxl007 is engaging in. There have been some interesting realizations so far that have been incorporated into the plan. These improvements have highlighted the benefits of journaling your trades and sticking to a plan. There have also been discoveries… Read More »Test Lab: Checking in on the Experiment
In this week’s episode, sprocket888 and viperxl007 examine an underrepresented superpower. Many factors can contribute to success in trading, but the list is very short when it comes to factors that universally can ‘save your bacon’. One such factor is to size the trading positions that you take properly. This is an aspect that is… Read More »Proper Position Sizing: An underrepresented superpower
In this week’s episode, sprocket888 and viperxl007 take a look at some recent experiments that viperxl007 has been doing around earnings. Viperxl007 is working to build a strategy that he finds interesting and has been testing various permutations of this. In this episode, he recaps three approaches he recently took and reflects on what worked… Read More »Earnings Experiments: Viperxl007 tests some ideas
In this week’s episode, sprocket888 and viperxl007 take a look at the option assignment. This is something that will inevitably happen when you sell options. This event can be the source of unknown fear and confusion. However, option assignment does not have to be a scary thing. In this episode, sprocket888 uses a recent example… Read More »Assignment: Can be more profitable than you think
In this week’s episode, sprocket888 and viperxl007 continue to look closely at some earnings trades. They discuss each respective strategy and then discuss how it applies to one specific earnings trade. Sprocket888 played $UPST with a short strangle during the week of earnings. Viperxl007 played $PRCH with a Calendar spread. Each type has pros and… Read More »High probability: Taking a deeper look at earnings trades
In this week’s episode, sprocket888 and viperxl007 closely examine earnings and options pricing. The earnings event is a binary event that sprocket888 often trades. He typically sells options heading into earnings. viperxl007 has been trading long on options and has recently started to look at using a calendar spread to trade earnings with options. In… Read More »Earnings: Profit with Probability.
In this week’s episode, sprocket888 and viperxl007 look at the children’s fable about the ant and the grasshopper. Each one took a different approach in good times. The pros and cons surfaced later in the fable, where one was better suited to weather the storm than the other. From there, viperxl007 talks about his retirement… Read More »Profits: Are you an Ant or A Grasshopper?
In this week’s episode, sprocket888 and viperxl007 reflect on the most recent week of volatile trading. The trading week was full of violent swings up and down. The traders discuss how this makes them feel and what they do in this environment. Sprocket888 reflects on how this level of volatility is a lot like sailing… Read More »The winningest move: Sometimes the winningest move is not to play the game.
In this week’s episode, sprocket888 and viperxl007 take a look at the tariff meltdown. First, they remind us what a tariff is and why it impacts the stock market. Then, they spend time individually reflecting on the impact of the meltdown. The retrospection covers many of the core fundamentals they talk about all the time… Read More »The Tariff Meltdown: A candid reflection of the impact to sprocket and viper.
In this week’s episode, sprocket888 and viperxl007 look at an option strategy called a Calander Spread. This combines two options at the same strike price in different months. Depending on whether you use Puts or Calls and if you sell or buy, you can express different ideas on the market. The benefit of this technique… Read More »The Calendar Spread: A consideration for smaller accounts.
In this week’s episode, sprocket888 takes a detailed look at volatility. Volatility is at the core of his trading strategy. Looking for elevated volatility contributes to the probabilistic edge that sprocket888 goes for. He covers two angles in this episode. The first is a recent earnings trade on $DLTR, where the elevated volatility helped score… Read More »Volatility Exploited: A major factor in probability for success.
In this week’s episode, sprocket888 covers a recent earnings trade on $OKTA. This is interesting because the trade did not work out ideally, and sprocket888 has been managing the trade to work down his losses so far. His latest move on $OKTA had him selling a straddle. This is when you sell a Call and… Read More »Strangle to Straddle: How sprocket888 ended up with a straddle on $OKTA
In this week’s episode, sprocket888 is joined by viperxl007. This week, the traders look at viperxl007’s trade on $TLT. This is one of the tickers that viper has been buying options on. viperxl007 has been using long options to swing trade with leverage names, and he sees price action opportunities. sprocket888 takes the $TLT trade… Read More »What the option?: Looking into the time impact of options.
In this week’s episode, sprocket888 runs a solo episode and takes a look at a recent trade on $COIN. This trade on $COIN went as far along as the worst-case scenario as possible. Trades like this one and wildly successful trades are the two extremes that will tempt you strongly to deviate from your plan… Read More »Stick to the plan: No matter how grim it may look.
In this week’s episode, sprocket888 is joined by viperxl007, who take a look at the buying options strategy. This is something that viperxl007 has started to experiment with. Historically, this is the exact opposite strategy that sprocket888 uses. However, the mechanics of options are something that sprocket888 knows very well. Viperxl007 bought options in two… Read More »Mechanics of Option Buying: viperxl007 experiments with buying options.
In this week’s episode, sprocket888 looks at a time when he thinks it makes sense to sell a Call. Following this guidance in this episode will help you boost your returns of holding stock while taking on little to no additional risk. Selling covered calls has been a method that sprocket888 has used to increase… Read More »Boost your yield: By Selling Calls safely.
In this week’s episode, sprocket888 is joined with viperxl007. sprocket888 first quickly recaps one of the biggest earning premium selling plays he has ever had. After that, sprocket888 talks through two recent earnings trades selling premium going into them. Viperxl007 then talks about his exploration of some new scalping approaches. In this, he looks at… Read More »Never stop learning: Stick to fundamentals while exploring new thinking.
In this week’s episode, viperxl007 and sprocket888 examine the recent market whipsaw action. First, sprocket888 talks about a premium selling trade he had on /RTY. With the massive volatility, he found his position in the money. Going down to the wire, he ended up taking assignment at expiration. Then, just before the market opened the… Read More »Stick to the plan: A lesson on how things can turn on a dime.
In this week’s episode, viperxl007 and sprocket888 take a look at the AI trade. Most recently, the market news hit a company out of China, DeepSeek, that reportedly could attain ChatGPT-like performance on a fraction of the power and cost. This news story sent shockwaves through the market as many traders began to question the… Read More »A thesis tested: DeepSeek news sends shockwaves through the market.
In this week’s episode, viperxl007 is back. Bitcoin has been in the mainstream media news a lot lately. The big topic concerns the US National Reserve of Bitcoin. viperxl007 and sprocket888 look deeper at this and ponder the question of ‘why?’. From there, they go through a thought exercise about the future of Bitcoin and… Read More »Bitcoin front and center: A deeper look at the latest headlines.
In this week’s episode, sprocket888 reviews two recent trades that have been a significant breach to the upside. Both $SNOW and $COIN were premium selling trades that have taken off like a rocket to the upside, going as far as $100 in the money. This is a worst-case scenario when it comes to selling option… Read More »When trades go bad: Keep on rollin’.
In this week’s episode, sprocket888 reviews a surprise trading opportunity surfacing on the /RTY last week. Heading into the week, nothing emerged as a trade to take. sprocket888 was planning on just sitting back through the week to see what might open up in the coming weeks. However, at the tail end of the week,… Read More »Suprise Opportunity: Volatility opened up on /RTY.
In this week’s episode, sprocket888 is getting ready for the first trades of 2025. As part of the preparations, there are secondary signals that he uses to help fine-tune his trade. In this episode, he talks about these secondary signals that he uses. They don’t mean anything to him by themselves, but when used with… Read More »Secondary Signals: A way to fine-tune your trade.
In this week’s episode, sprocket888 looks deeply at option assignment. Option assignment is when the buyer chooses to exercise the option or when the option is in the money at expiration. Assignments do not happen often, but they do and will happen at some point. As with everything we discuss on this show, understanding is… Read More »Come on baby, don’t fear assignment.
In this week’s episode, sprocket888 and viperxl007 look back at 2024. This is the time of year when the two traders highlight the most memorable and proud moments and the most significant learning moments. As the year passes, it is sometimes hard to see all the events from an aggregate perspective. Looking back at the… Read More »Reflections: sprocket888 and viperxl007 look back at 2024.
In this week’s episode, sprocket888 goes over what is known as an Option Spread or an Option Vertical. This is a type of trade where both the gain and loss potential are fully defined and limited. In understanding this trade type, you can use the high probability strategy of selling out-of-the-money options while containing and… Read More »Defining the risk: Selling options safely.
In this week’s episode, sprocket888 and viperxl007 discuss their plans for the balance of the trading year. They both will exercise patience as neither one feels overly optimistic about the general markets. There are, for sure, a lot of opportunities that could be floating around out there, but patience is the key. When they talk… Read More »The final countdown: The traders’ plans for the balance of 2024.
Trader sprocket888 recently opened up a trade on the Russel index. The trade was selling a short strangle on the index. He was looking to capitalize on the pre-election volatility. However, The Russell has far exceeded the expected move to the upside post-elections. This has caused the trade to be in the red by a… Read More »Managing a breach: Not all trades are perfect.
Trader sprocket888 looks back at a big earnings day in this week’s episode. In the week, four tickers fit the extended volatility setup leading into earnings. The twist on this was that all four announced on the same day. One before the bell and three after the bell. In this episode, sprocket888 talks about the… Read More »Four earnings, one day: a recap of the trades and the results.
In this week’s episode, trader sprocket888 is joined by viperxl007, who returns to the show after a long break. The two traders reflect on the events leading up to the election and what the landscape looks like post-election. For viperxl007, this was the first election cycle in which he actively traded. Both traders highlight how… Read More »Post Election Reflection: Uncertainty has been dramatically cut down.
In this week’s episode, trader sprocket888 looks back at recent trades discussed on the show. There are six to look at. All six trades were discussed in a previous episode, and sprocket888 entered each. Most of them have run their course and have been closed out. Looking back, five of the six have been winners,… Read More »Recent Rundown: $TEAM, $INTC, $F, $SNAP, $META, and $DFS
In this week’s episode, trader sprocket888 needs to pick up more portfolio theta. Portfolio theta is the time premium that decays on a given day. The strategy here is to keep the theta high while the delta low. What is delta? Delta is the amount of movement in the portfolio relative to the movement in… Read More »Theta up, Delta down: Picking up some daily theta.
In this week’s episode, trader sprocket888 looks for possible earnings trades for the upcoming week. These are trades where volatility is extra extended, and he is looking for solid volatility contraction and the basis on which the expressed volatility was originally overstated. In this screening, he has landed on two trades, $SNAP and $META. The… Read More »Earnings Trades: OH $SNAP that is so $META.
In this week’s episode, trader sprocket888 follows up on a trade he picked out last week for earnings on $DFS. He entered a trade for the earnings week and the subsequent monthly expiration. He walks through how the trade panned out in the two regular views: the table view and the flappy bird chart. The… Read More »Ring the register: The conclusion of the $DFS trade.
In this week’s episode, trader sprocket888 is ready to deploy some capital. To do this, Sprocket888 talks through the steps he takes to identify a trade worthy of his capital. The trading style here is premium selling, so the techniques and screening are tilted toward that aim. However, some aspects are also relevant to any… Read More »Shadowing Sprocket888: How does Sprocket identify where to deploy capital?
In this week’s episode, trader sprocket888 looks at his recent earnings trade on $MU. This trade needed management and adjustment, something that should always be prepared for. Sprocket888 talks through the trade set-up, the earnings announcement, and the subsequent trimming of the sails to adjust for the result. This episode highlights the importance of preparing… Read More »Always be ready to trim the sails: A look at a trade on $MU.
In this week’s episode, trader sprocket888 is joined by viperxl007. This week, we take a break from ‘trading’ and focus on retirement. This is a topic that too many people put off until later, only to find that later comes too late. We know there can be anxiety and uncertainty regarding all the different retirement… Read More »Retirement: Even RedBananas need to retire.
In this week’s episode, trader sprocket888 is joined by viperxl007. The Fed has cut interest rates by 0.5%, and the two traders are taking a look at the price action associated with this move. They also discuss if anything will influence their calculus or strategy now that the rate cut has been made. Viper then… Read More »To roll or not to roll: A look at a real example with $SBUX.
In this week’s episode, trader sprocket888 is joined by viperxl007. The two traders take a look at different trading tools. There is more to trading than simply buying and selling shares. Many financial products out there will allow you to express your thesis in various ways. Each of these tools has different aspects that may… Read More »Kid, you got options: A look at different trading tools.
In this week’s episode, trader sprocket888 is joined by viperxl007. sprocket888 updates traders on his latest attempt at strangling the big green monster. He opened up a short strangle play on $NVDA earnings. Then, the two traders discuss their general thoughts on the market in light of the latest moves by the Oracle of Omaha.… Read More »Market Ramblings: A view from the two most important schmucks on the Internet.
In this week’s episode, trader sprocket888 is joined by viperxl007. It has been over a month since Viper has been on the show, so in this episode, Sprocket gets updated on what Viper has been doing. Additionally, the two hosts look at ‘The Carry Trade’ meltdown. While the meltdown was paused because governments retreated from… Read More »Interdependent Markets: One domino away from a meltdown
In this week’s episode, trader sprocket888 looks at “The Short Put.” For a trader who has not sold options before but is used to going long stock, the short put is one of the best entry points. It is similar to a limit order, except your order will not fill immediately once the strike is… Read More »The Short Put: Getting paid to wait.
In this week’s episode, trader sprocket888 looks at life after assignment. Sprocket888 entered an earnings strangle on $SBUX at the end of April. This trade quickly turned against him, and he could only pick out one roll before the assignment. Since that assignment, he has been selling covered calls strategically against the 200 shares he… Read More »$SBUX: There is life after assignment.
In this week’s episode, trader sprocket888 takes a look at hedging. Hedging is trading something opposite your other holdings to help protect you in case you are wrong in your assumption. Lately, the markets have been going up and up and up. This has caused sprocket888 to remember legendary investor Warren Buffet’s advice: “Be fearful… Read More »Hedging: Fearful when others greedy, greedy when others fearful.
In this week’s episode, Trader Sprocket888 extends the back-to-the-basics series and discusses how he screens for the premium selling plays. Two main components drive the premium quantity: time and volatility. He targets a sweet spot when it comes to time and targets extended volatility in hopes of a mean reversion. The basics are covered first,… Read More »Back to the basics: Screening for premium
In this week’s episode, Trader Sprocket888 simplifies the complex world of options trading by returning to the basics. Selling options, Sprocket888’s favorite trade, is relatively straightforward. It’s like selling insurance- the seller hopes they don’t need to fulfill it, and the buyer participates for protection. Sprocket888 first covers the difference between a Put and a… Read More »Back to the basics: Selling option premium
This week, trader sprocket888 shares his lone trade on $DAL earnings. The trade, which initially followed a traditional setup with extended volatility, took an unexpected turn. Sprocket888 decided to roll the put and bet up the level of the put deeper ITM, a move that was purely speculative. The speculation was based on an interesting… Read More »Earnings with a twist: $DAL extended with a long.
In this week’s episode, trader sprocket888 covers two earnings trades he placed that played out in the worst-case scenario. The first trade is treading on thin ice nearing assignment (although not assigned yet). This is $FDX and the price breached the short call and is pretty deep in the money as of this recording. The… Read More »Come on baby, don’t fear assignment.
In this week’s episode, trader sprocket888 covers two earnings trades he placed. The first trade is on FedEx ($FDX). The setup was not his favorite, but it did tick the boxes that needed to be confirmed before entering. The second was on Micron ($MU). This company is caught up in the AI fever, and volatility… Read More »Chips and ship: Earnings on $MU and $FDX.
In this week’s episode, traders sprocket888 and viperxl007 share their thoughts on compounding growth. The format of this episode is more of a fireside chat, and no fireside chat is complete without a beautiful whiskey pour =). Each trader uses a different strategy, which they cover in this episode. Despite their different approaches, they agree… Read More »Compounding Growth: A wealth-building superpower
Sprocket888 discusses the thought and plan behind his $GME trade in this week’s episode. The focus of the episode is to highlight how something so violent and volatile can be traded so that significant risk can be mitigated. However, in the end, there is a direct correlation between risk and potential reward. The secret and… Read More »What do you meme?: Mitigating meme stock risk.
In this week’s episode, traders sprocket888 and viperxl007 share their thoughts on the $GME craze. Rather than focus on the wild speculation, they take it and break down what it means in raw mechanical application. There are theories out there that allude to a share shortage based on the Call positions held by the famous… Read More »$GME Hype: Breaking it down.
In this week’s episode, seasoned traders sprocket888 and viperxl007 share their insights. First up, sprocket888 quickly reviews a recent earnings trade on $OKTA, demonstrating his deep understanding of market dynamics. This trade was very similar to last weeks $NVDA earnings trade, strong volatility contraction. Then, viperxl007, known for his astute market observations, updates us on… Read More »A new frontier for retail traders: Spot ETH hits the ETFs.
In this week’s episode, sprocket888 goes through his recent trade on $NVDA earnings. Premium selling is Sprocket’s favorite trade, and earnings are when premiums can be ripe for selling. $NVDA has been a company that has been on a continuous up and to the right kind of stock lately on the back of the AI… Read More »Strangling the monster: $NVDA earnings
In this week’s episode, sprocket888 is joined by viperxl007. In this week’s episode, the meme stocks are BACK. At the time of this recording, $GME and $AMC were ripping again, making a tear for the stars. Viper couldn’t resist the temptation and did a little trading with options in the $AMC name. On the other… Read More »Two opposing forces: Meme stock trades and conservative covered calls.
In this week’s episode, sprocket888 reviews the earnings trades that he took this past week. His trades on earnings are always targeted at names with very extended volatility. The play here is to sell the volatility that is very extended as the probability for a mean reversion is very high. This strategy can turn 10-15%… Read More »Earnings: The fastest path to volatility contraction.
In this week’s episode, sprocket888 is joined by viperxl007. Together, they take a look at some of the recent news about inflation and federal funds rates. As mentioned, history does not repeat itself but often rhymes. The traders take a look at the raw data that can be behind the news stories these days. They… Read More »Don’t take the news at face value. Check the facts.
In this week’s episode, sprocket888 takes the helm solo. Sprocket has a set of open trades that still need to hit the unwinding targets. They are working against him in various capacities. In this episode, he looks at each open trade that has been undergoing management. This will highlight that despite trades going in the… Read More »In downtimes, keep on rolling.
In this week’s episode, sprocket888 is joined by viperxl007. A rare event is nearly here: The Bitcoin halving. The halving is when the amount of bitcoin awarded for finding a block is cut in half. This will be the 4th occurrence of this. The Blockhead traders discuss what this means to the traders and look… Read More »The Halving is nigh
In this week’s episode, sprocket888 is joined by viperxl007. It can be difficult for some to become interested in capital markets. There are a lot of words that don’t make a lot of sense; some people sound like they know it all and speak above the ‘common’ man. However, there is room for all kinds… Read More »Thematic Investing: An engaging way to participate in capital markets.
In this week’s episode, sprocket888 is joined by viperxl007. It is April in the United States, and while some people view it as the arrival of spring, it is also the arrival of the US tax season. In the US, taxes are to be filed by April 15th. In this episode, viperxl007 and sprocket888 discuss… Read More »Taxes, Taxes, Taxes.
In this week’s episode, sprocket888 is joined by viperxl007. viperxl007 is finally back on the show after several weeks of absence. In this week’s episode, the two hosts chat about how their trading has evolved over the years of the show. This is week 159 of the show, meaning the show has been going on… Read More »A fireside chat.
In this week’s episode, sprocket888 runs through the open trades he has yet to close out as winners. Five falls in this category and are treading water collecting premium as he awaits the trade to gain ground in his favor. These are: $/NG, $FL, $DG, $JWN, and $WOLF. This episode is intended to highlight that… Read More »When a trade is not a winner, you don’t have to call it a loser.
In this week’s episode, sprocket888 had an expiring CC that was squarely in the money (ITM). However, he could still collect more premium if he pushed out the option another month. This would keep him eligible for the next dividend payout. The episode calls out how the play can look done, but you can keep… Read More »Keep pushing the wheel even if it looks uphill.
In this week’s episode, sprocket888 played three earnings trades: $FL, $JWN, and $MDB. The three all took different paths. sprocket888 looks at these three trades and discusses the setup, the event, and the management afterward. The worst situation was $FL, where the trade went deep into the money when the move far exceeded the expected… Read More »The Good, the bad, and the ugly: $MDB, $JWN, $FL.
In this week’s episode, sprocket888 takes a quick look back on an earnings trade this week. Selling premium is the trading style of choice for sprocket888, and four times a year, he gets to turbocharge the plays during the earnings season. Earnings are a known binary event. Leading up to the announcement, there are a… Read More »Textbook Earnings: Reflection on $AAP Earnings.
In this week’s episode, sprocket888 is joined by viperxl007. This week, both traders reviewed the reps they had taken in the trading gym. sprocket888 first covers his premium selling trading. First, a trade on $/NG close to the standard setup. Followed by an earnings trade setup on the big green monster of $NVDA. viperxl007 then… Read More »Trading gym reps: Premium selling and price action.
In this week’s episode, sprocket888 reviews two recent management trades in his portfolio. $WOLF and $DG. Both of these trades were put on as premium selling earnings trades. Each one is in a different phase of management. The first is $WOLF, which has yet to be assigned. The Put strike was breached after earnings, and… Read More »Earnings Miss: Manageable when premium selling.
In this week’s episode, sprocket888 and viperxl007 welcome back special guest silverback. In this episode, sprocket888 first touches on an earnings trade that did not work out in the ideal fashion, and he discusses how he managed the trade. Then sprocket and viper bring in special guest silverback and discuss the experiment that viper kicked… Read More »Bitcoin ETFs: Are they worth the hype?
In this week’s episode, sprocket888 attempts to reel in the earnings trades he laid out last week. There were three, and as of the recording, two were fully reeled in, and the third was still fighting on the line. $SBUX, the first, was a straightforward haul and turned an excellent quick profit. $AMD, the second,… Read More »Earnings trades: Reeling in the fish.
In this week’s episode, sprocket888 gets out the fishing line to troll for some earnings trades. As earnings season gets underway, there are some volatile trades out there. While a lot of the market is pushing up and to the right, a few names are extra extended going into next week’s earnings. In this episode,… Read More »Earnings trades: A tale of three tickers.
In this week’s episode, sprocket888 is joined by viperxl007. This recording was made one week after trading began on the Bitcoin spot ETFs. The two hosts look at how it is going and how it has been relative to the discussions and predictions in last week’s episode. They round the episode off with a new… Read More »Bitcoin spot ETF: One week in
In this week’s episode, sprocket888 is joined by viperxl007. This recording occurred on the day the SEC approved several spot price ETFs on Bitcoin. This concludes well over a year of drama. This episode is full of aging risk because it was recorded POST approval, but BEFORE a single trade took place on the open… Read More »THE riskiest episode to date.
In this week’s episode, sprocket888 is joined by viperxl007. They discuss the latest crypto buzz that has consumed the crypto space and the mainstream media. This buzz is all around the potential upcoming Bitcoin ETF approval by the SEC. Approval here will create an investment product that will be approachable to all retail traders and… Read More »Bitcoin ETF: Buy the rumor, sell the news?
In this week’s episode, sprocket888 covers a busted earnings trade. He documents the management actions he has taken to date and highlights the ones he plans to take. This episode shows that assignments can and do happen in the world of premium selling. Often, these assignments lead to further declines in profit. However, while the… Read More »You can be down, but you don’t have to be out.
In this week’s episode, sprocket888 covers his core strategy. This strategy focuses on just two metrics: Delta and Theta. He likes to keep his Theta high and his Delta low. Theta is a measure of time premium in options. This is a value that steadily declines as time passes. The strategy revolves around selling the… Read More »Theta up, Delta down.
In this week’s episode, sprocket888 is joined by viperxl007. First up, sprocket888 talks about a premium selling trade that he engaged in on Natural Gas (/NG). This is one of his standard premium-selling plays. This is not associated with any binary event. After that, they looked at the current market and where we might stand… Read More »Bull or Bear? Should you care?
In this week’s episode, sprocket888 is joined by viperxl007. They take a look at trading mechanical. This is an aspect of trading we mention, as it is critical to staying in the game over the long term. The first topic is an update on the $CHWY trade from last week. This is an excellent example… Read More »Discipline: It takes practice to achieve.
In this week’s episode, sprocket888 recorded off-cycle. In this episode, sprocket888 looks at two potential earnings trades that are upcoming this week. The first is in $CHWY, and the second is in $DOCU. This week, the difference in looking at these is that sprocket888 explores the trades with no protection and then discusses the different… Read More »Earnings: With and without a safety net.
In this week’s episode, sprocket888 recorded an off-cycle for the US holiday of Thanksgiving. These are two positions that sprocket888 holds from an assignment that is getting interesting to get some more premium out of. The first up is $DG. Dollar General was an earnings trade that did not work out, and a sprocket was… Read More »So you have been assigned: How to wheel out of there.
In this week’s episode, sprocket888 is joined by viperxl007. They dive into a recent crypto project bullet that was dodged. The two traders had been invested in a Delta Prime brokerage strategy. This strategy was a “delta neutral” plan accruing $AVAX in a leveraged capacity. One of the pools that was holding the funds was… Read More »There is no such thing as an unloaded gun.
In this week’s episode, sprocket888 goes back to the three earnings trades he picked out in the last episode and covers how they did. This is a crucial thing to do because the calls last week were made before the earnings, and this ‘pure’ reflection will show no smoke and mirrors here. We are not… Read More »Conclusion of the Earnings Trio: $GT, $VERV, $AYX.
In this week’s episode, sprocket888 goes on a hunt for some earnings trades. These trades will mostly be done by the time this video is published. The point is to create knowledge of the fundamentals of the trades. We are not looking for copycat traders. Copycat traders will ultimately lose in the end because they… Read More »Earnings Trio: $GT, $VERV, $AYX
In this week’s episode, sprocket888 will share some knowledge he recently got on ‘The Money Supply.’ This topic came up in a recent episode on the usdebtclock.org website. It was a topic that sprocket wanted to look deeper into. In this episode, we do just that. We cover what exactly money is, how it is… Read More »The Money Supply: What is it and how does it work?
In this week’s episode, sprocket888 does a special episode focusing on his portfolio maintenance in October. There are a few trades that need to be managed. The first is an option on the /RTY futures index. The second is a covered call in $CVNA. sprocket also shares his trading setup configuration and how he scalps… Read More »October Maintenance: A window into sprockets management
In this week’s episode, sprocket888 looks at the start of 3rd quarter earnings. Earnings is one of sprocket888’s favorite ways to trade volatility contraction. As 3rd quarter earnings start, he walks through his screener and picks out a play on $WBA. The methodology covered in this episode can be used again to screen for other… Read More »Earnings: First play of the Q3 cycle $WBA.
In this week’s episode, sprocket888 is joined by viperxl007. This week is a special episode that was started from viewer-requested content. A viewer contacted us and asked us if we knew the “Treasury Dollar” number on the usdebtclock.org website. This is not something that viperxl007 or sprocket888 knew about. However, as always looking to expand… Read More »Viewer Requested Content: usdebtclock.org and the Treasury Dollar
In this week’s episode, sprocket888 is joined by viperxl007. The overall markets have been in a pullback mode for a few weeks. This pullback has sprocket and viper a bit bored in the market. Each covers things they are doing to keep interested in the market and bide time during the slide. sprocket888 has started… Read More »Market doldrums: sprocket and viper dabble in some new tactics.
In this week’s episode, sprocket888 is solo. sprocket888 revisits two recent experiments to update on how it is going. The first update is on the US Treasury strategy for parking the cash in his trading account. This is a 5wk ladder into 4wk T-Bills. This allows sprocket888 to 10x his return on money that needs… Read More »Update on Treasuries and Hummingbot
In this week’s episode, sprocket888 is joined by viperxl007. This episode was planned to cover three experiments and update on all three. However, a significant portion of the recording was lost and could not be recovered. So, the only salvageable part was the update on the Bitcoin challenge viperxl007 engaged in about two months ago.… Read More »Update on Bitcoin Challenge
In this week's episode, sprocket888 is joined by viperxl007. First up, they touch on some updates in the crypto regulation space. There have been two notable court cases. The first case was about the risk of participating in a DEX. The takeaway from this case is that the judge ruled that there is insufficient guidance when ruling on DEXs. The second case, which was a bit bigger, found that the SEC rejection of a spot ETF needed to be more consistent, and the rejection was considered NULL. It is forcing the SEC to reevaluate the application. After the news updates sprocket and viper look at getting a crypto trading bot going. This bot is based on an open-source project called Hummingbot. The episode is intended to be an introduction to the possible things with the bot. sprocket888 has more work to do as he is only just learning. This bot hits on one of the core principles sprocket likes to trade. That is delta neutrality or risk aversion while maintaining profitable gains in a high probabilistic manner.
- 00:00 Disclaimer
- 00:17 Intro
- 02:38 Regulation on crypto, the door slowly creaking more open
- 03:56 Court case on DEX claims DISMISSED!
- 07:44 Greyscale SPOT ETF application MUST be reconsidered
- 12:00 The floodgates of market participation will eventually break open
- 14:40 Market Making at the 50k ft view
- 18:59 Multiple strategies markets leverage to attract liquidity
- 20:35 Market Making should be a neutral strategy
- 22:30 Looking at the exchange and the spread our bot will be participating in
- 26:02 Arbitrage between exchanges is a thing, but it is not what we are covering today
- 27:07 Hummingbot: An open-source project for crypto trading bots
- 29:26 Pulling down hummingbot to use
- 31:31 Starting up the hummingbot
- 39:27 Connect the bot to the DEX via the gateway
- 43:29 Ready to run a strategy on hummingbot now that all is connected
- 49:18 Exchanges need Market Makers to create a good experience for participants
- 51:14 Conclusion: Hummingbot can help create a neutral strategy that can pay in rewards
- 54:07 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff/
Follow sprocket888's trades: https://www.thetagang.com/sprocket888/
In this week's episode, sprocket888 is joined by viperxl007. They take a quick look back on how the Russel has progressed in the past week based on the findings from last week. The conclusion is that sprocket888 still needs clarification, and more practice is needed. As part of a distraction to the practice, sprocket went fishing for some earnings trades at the tail end of earnings season. He took two trades. Both were over 80% IV_Percentile trades. The first was on $DG Dollar General. sprocket looks to have it thrash but stick within the standard deviation, so he sold a short strangle. A second play in $VSCO was also put on with the same thesis of staying inside the expected move. As always, earnings trades can be unpredictable, but once the IV becomes so stretched, the probability tilts in the house's favor to have a go at it.
- 00:00 Disclaimer
- 00:18 Intro
- 01:29 The Russel 2000 Index, what has changed since last week?
- 06:12 Sometimes you make a trade you have no business making
- 08:19 Earnings trades: Always an exciting time
- 09:42 $DG IV Rank over 84%
- 13:48 $VSCO setting up to a big print
- 19:12 Conclusion: Practice, Practice, Practice, but remember to have fun!
- 20:53 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff/
Follow sprocket888's trades: https://www.thetagang.com/sprocket888/
In this week’s episode, sprocket888 is joined by viperxl007. They take a quick look back on how the Russel has progressed in the past week based on the findings from last week. The conclusion is that sprocket888 still needs clarification, and more practice is needed. As part of a distraction to the practice, sprocket went… Read More »Earnings can be a healthy distraction.
In this week's episode, sprocket888 is joined by viperxl007. They start by adding more information on US Treasuries and buying power. sprocket888 mentioned last week that this was a valid method to utilize the capital in your margin account marked for buying power expansion. He confirms this does indeed work. The rest of the episode is a working session on charting price action. This is something that needs continuous practice and learning. Even the Blockhead traders don't have this down to pure science (but we are trying to). This episode is an "open mic" session of trying to chart out the Russel index to "gain a sense of direction and next steps that are most probable to occur.
- 00:00 Disclaimer
- 00:18 Intro
- 01:41 Update on the US Treasuries from the last episode
- 08:03 Indexes and Price Action, working session
- 11:13 Bull or Bear, how to tell?
- 12:45 Let's start at the Monthly levels
- 13:23 Where is the most recent failure
- 21:25 Now, let's step into the weekly chart
- 27:11 Range identified, what is next?
- 27:47 Inversion can remove bias
- 32:00 Double-clicking into the Daily timeframe
- 38:02 The final ranges to hold and lose
- 46:09 You can keep 'zooming in' by clicking down to 4hr
- 50:16 Starting at the monthly is not required
- 51:35 I guess…..just practice
- 53:54 viperxl's go/no go thought process
- 57:11 Establish a Risk to Reward ratio to know if you should "go for it."
- 60:47 sprocket hopes to gather more directional bias vs. a tangible play
- 63:41 Wrapping the closing candle of the failure is a nugget to take away
- 64:43 Objective approaches will lead to repeatability
- 66:12 Conclusion: Observing others and their methods will yield nuggets of data for you
- 68:06 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff/
Follow sprocket888's trades: https://www.thetagang.com/sprocket888/
In this week’s episode, sprocket888 is joined by viperxl007. sprocket888 has been researching and learning all about US Treasuries and how they might fit into his portfolio. sprocket888 shares what he has learned so far with viperxl007. He starts with what precisely the US Treasury is and what it does. sprocket hits on all the… Read More »Fixed Income: A New Dimension for your Portfolio.
In this week’s episode, sprocket888 and viperxl007 examine the current market condition. Offering some thoughts on the S&P. sprocket888 talks about the Uber-hyped AI trade and the associated names going to the moon. viperxl007 then helps look at the current price action on the $SPY to see if there are clues as to what road… Read More »Current market action and what PA tells us.
In this week’s episode, sprocket888 and viperxl007, take a look at House Bill 4763. This bill recently introduced to the House floor is the first step in offering guidance regarding regulating the crypto markets. The media has had several ‘hot takes’ on the bill’s contents. The best way to understand these ‘hot takes’ and decide… Read More »House Bill 4763: Crypto regulation shows signs of life.
In this week’s episode, sprocket888 and viperxl007 share their ONE thing. This is the ONE thing they would share with a newcomer to the financial markets if they were only allowed to share one thing. sprocket888 focuses on a relentless pursuit of knowledge, while viperxl007 mentions the importance of not giving up too fast and… Read More »What is the ONE thing: The single biggest piece of advice.
In this week's episode, sprocket888 reports out solo. The upcoming week will be the busiest earnings week of Q2, and earnings trades are something sprocket88 enjoys, so he looks at three exciting announcements from a premium selling perspective. To start, sprocket888 recaps his filtering technique which will help to highlight the best opportunities. Once through the screening refresher, we call out the three picks for the week: $META, $CMG, and $ROKU. In looking at these three picks, sprocket888 steps through his process. First, the volatility elevation. Second, the chart screening. Third, the option chain screening. Once all that is passed, he discusses how to pick the strikes and adjust the size to meet your portfolio position sizing capacity.
- 00:00 Disclaimer
- 00:17 Intro
- 01:35 Earnings trades: Where do they all start?
- 01:55 The initial filter criteria
- 02:11 Parameter 1: Underlying Price
- 03:10 Parameter 2: Spot volatility on the underlying
- 03:52 Parameter 3: IV_Percentile
- 04:59 Parameter 4: How far out to look for earnings
- 05:46 Parameter 6: Daily average volume
- 06:38 Parameter 7: Exclude earnings in some date range
- 07:21 Sorting through the list returned by the filter
- 07:35 Review the list from highest IV_Percentile to lowest
- 08:33 Review the chart of the first interesting hit
- 09:46 Take a look at the option chain if the chart test passes
- 10:52 Back to the list if one of the tests fails
- 11:13 Earnings Pick 1: $META
- 11:49 $META Chart test
- 13:50 $META Option chain test
- 15:29 Add protection legs if the BP is too big
- 20:07 Earnings pick 2: $CMG
- 20:28 $CMG Chart test
- 21:46 $CMG Option chain test
- 25:37 Earnings pick 3: $ROKU
- 25:46 $ROKU Chart Test
- 27:37 $ROKU Option chain test
- 30:25 Conclusion: 3 earnings picks for fun this week $META, $CMG, and $ROKU
- 32:33 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff/
Follow sprocket888's trades: https://www.thetagang.com/sprocket888/
In this week’s episode, sprocket888 is joined by viperxl007. This week they look at a few experimental things that viper has been trying out. The first topic is the market maker bot that viper has been running. Recently this bot has hit a milestone. That milestone is the point at which viper has recouped his… Read More »Hard Hats On: An update on some experimental topics.
In this week’s episode, sprocket888 is joined by viperxl007. This week they take a look at the world of ETFs. First, they cover the ETFs at a high level noting the composition and variety. They then drill into the specific ETF type of crypto, notably Bitcoin. This is an exciting product because the SEC is… Read More »ETFs: A flavor for everyone. Yes, even crypto.
In this week’s episode, sprocket888 uses an actual trade he has had going for a while on $AMZN to discuss the Covered Call. This type of trade is excellent for learning the art of selling options. This is because the core portion of the trade is owning equity shares, something most individuals are already comfortable… Read More »Covered Call: SUPER Boring, but great for getting started in options.
In this week’s episode, sprocket888 looks at a common mistake that traders/investors make. That is, they often look to the past to determine the future. This is a careless thing to do because the past has never been a predictor of the future. The world is full of events that have no historical parallel. This… Read More »Things that have never happened before happen all the time.
In this week’s episode, sprocket888 is joined by viperxl007. In the aftermath of the SEC lawsuits, all the “alt-coins” have dropped precipitously. This stems from many CEXs getting nervous about the impact of offering these coins based on the response of the SEC to Coinbase and Binance. This is an excellent example of how a… Read More »Reality in trading is relative and not absolute.
In this week’s episode, sprocket888 is joined by viperxl007. Recently the SEC has launched a full-scale attack on centralized crypto exchanges (CEXs). This is unsurprising, as they have been telegraphing this since the current commissioner Gary Gensler took over. In this episode, we take some foundational level-setting. The first element to level-set on is ‘What/Who… Read More »It’s the end of crypto as we know it, and WE FEEL fine!
In this week's episode, sprocket888 is joined by viperxl007. They discuss the latest buzzword of "AI." This noun has taken off in all financial stories with a new magnitude following the big earnings beat of nVidia in the most recent quarter. Artificial intelligence will surely be a disruptive technology, but the punch bowl is overflowing, and traders can't get enough these days. After discussing the latest happenings around the "AI" word, sprocket888 talks through the latest earnings play on $CRM. Then we round out the show by laying out a potential theta-burning play based on the latest AI craze. Theta burning plays remain the bread and butter trade for sprocket, and he is always looking in areas where volatility is raging….. "AI" is that space at this moment.
- 00:00 Disclaimer
- 00:18 Intro
- 01:45 AI here and an AI there, everywhere an AI
- 07:55 $CRM Looking for a coin flip earnings play
- 11:06 $CRM Option Chain
- 13:57 $CRM earnings chart play by play
- 15:59 How high volatility helps give you a deep profit range
- 18:43 $CRM is nearly $500 in Theta!
- 21:09 Yes, even $CRM dropped the AI noun
- 22:11 $SMCI a possible theta gang play
- 25:22 $SMCI on the option chain
- 28:30 Define the risk and make a much lower capital option
- 29:44 viperxl007 does a little charting on $SMCI
- 30:55 Fibonacci retrace tool
- 36:26 Conclusion: Theta decay, position it neutral, and get an excellent low-risk profitable trade
- 38:54 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
Follow sprocket888's trades: https://www.thetagang.com/sprocket888
In this week’s episode, sprocket888 is joined by viperxl007. They discuss the latest buzzword of “AI.” This noun has taken off in all financial stories with a new magnitude following the big earnings beat of nVidia in the most recent quarter. Artificial intelligence will surely be a disruptive technology, but the punch bowl is overflowing,… Read More »AI here, AI there, everywhere an AI!
In this week’s episode, sprocket888 takes a look at options on futures. There are three characteristics of options on futures that can turbocharge a portfolio. First, there is a limit and narrow set to look at, so there is no concern about ‘getting lost.’ Second, the buying power required is based on SPAN margin and… Read More »Options on Futures: Portfolio Nitro
In this week's episode, sprocket888 is flying solo. He takes this opportunity to talk about the two metrics that direct his portfolio composition. Those two metrics are his portfolio Delta and his portfolio Theta. sprocket888 is a pure premium seller. However, the magnitude and risk that is sold must be controlled. Over the years of experimenting, he has boiled this down to just two simple metrics. The first is portfolio delta. This metric measures his directional risk. This value is targeted to remain neutral. By keeping the portfolio delta's neutral, the volatility felt in the portfolio is very muted and manageable. The second metric is the portfolio Theta. This value measures the amount of decay each day. This metric helps guide the magnitude and expected gains by allowing premiums to erode. sprocket888 shows you what he does to adjust deltas and thetas in real-world examples.
- 00:00 Disclaimer
- 00:17 Intro
- 01:37 sprocket888's portfolio
- 02:13 Group positions by the expiration date
- 03:25 Selling covered calls on positions that have been assigned is a thing to do
- 05:43 Keeping it neutral
- 06:37 Only TWO fundamental values do I track every day
- 07:29 Delta is the FIRST number to watch
- 09:44 Theta is the SECOND number to watch
- 10:43 Visualizing these two key metrics
- 12:15 Actual portfolio delta
- 13:00 Actual portfolio theta
- 13:58 What happens when the deltas are NOT in balance?
- 17:17 What happens when theta is too low?
- 17:42 Heading to the screener
- 19:00 Once we have a ticker, time to check the chart
- 20:31 Next, check the premium on the option chain
- 21:43 Adding in the trade, what theta do we get?
- 23:41 Need more theta? Get out the pole and go fishing.
- 27:31 When do you take a position off?
- 31:13 Conclusion: sprocket is all about selling that premium, watching the delta and theta numbers to guide actions
- 33:49 Outro
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In this week's episode, sprocket888 and viperxl007 look at a new opportunity to profit from a service. This time viperxl007 is experimenting with running a market-making bot. While this bot is operated in a small niche corner of the crypto space, the same concepts and principles apply in any free market. However, because this market corner is so tiny, viperxl007 can influence the market and provide price discovery with his limited capital. This level of impact in a more mainstream market requires gobs and gobs more capital. This is another instance of wanting to understand how something works to leverage that to gain an edge and a sliver of profitability. Before the two blockheads get into the down and dirty of market-making, they discuss the overall market environment, and each gives their thoughts on the macro picture they see.
- 00:00 Disclaimer
- 00:17 Intro
- 01:33 Market perspective update
- 03:12
- 08:21 Making your money work for you is always a good thing
- 12:00 If you can be a market maker….be a market maker
- 12:28 What exactly IS a Market Maker?
- 19:56 viperxl007 looks to the world of crypto for market-making opportunity
- 23:58 Dexalot a DEcentralized Exchange with an order book
- 26:10 There is an Open Source trading bot that can work on Dexalot
- 32:09 How does the market maker profit?
- 37:17 Is this where you saw crypto going 15 years ago?
- 44:49 This experiment is fully funded by earned interest margin
- 47:26 Conclusion: Wealth building is NOT single-threaded; diversify and KNOW the mechanics
- 49:53 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 are only one week after the discussion on $FRC and whether it should be traded. Well, $FRC is no longer around. Their assets have been seized and sold to JP Morgan. viperxl007 and sprocket888 talk about what unfolded and what lessons they learned. This is the first stock that each of them has held that ended up delisting and essentially going to $0. They also discuss the hauntingly similar aspects of the regional banking crisis with the financial market meltdown in 2008. The current regional banking situation unraveled and exploded so fast. In this episode they look at the mechanics under the hood that essentially led several of these giants to disappear overnight. The interesting aspect of this is there was nothing complex or fancy. It was just pure and simple poor risk management of the capital investments of the bank. As with every new situation, there are lessons to be learned. This time we learned what happens when a bank enters receivership under the FDIC and what happens to the equity and bond holders.
- 00:00 Disclaimer
- 00:18 Intro
- 02:33 How much is a quarter worth?
- 04:32 What year is it? Are we in 2008?
- 05:01 Bear Sterns started the 2008 avalanche with JP Morgan
- 07:36 The banking industry tried to build a dam by shoring up Bear Sterns
- 09:34 2023: A new bank, JP Morgan, called again to shore up confidence
- 11:24 Say what you will, but there are even similarities to crypto too
- 13:50 Simplified breakdown of the root of the issue at the regional banks
- 19:45 As panic starts, there is a drive to spread money to many banks to stay under the FDIC insurance limit
- 21:48 $FRC looked so tasty, but it sure was a SOUR bite
- 29:54 This is a perfect example of why you should KNOW the mechanics of what you are trading
- 32:52 JP Morgan has gutted the good stuff from FRCB and left the carcass to rot
- 36:25 Going in, we did not expect that we would be OWED anything
- 39:25 Conclusion: Know your history, and stay alert. There is always a trade to be made
- 41:26 Outro
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In this week's episode, sprocket888 and viperxl007 look at $FRC. First Republic Bank has been front and center in the banking liquidity scare. There have been many tradable events with the underlying, but SHOULD you be trying to trade it? sprocket and viperxl007 have been trying to surf the extreme volatility, but they share their thoughts on whether others should wade into the water. Then sprocket talks about options selling and what is known as early assignment risk. This is linked to $FRC because the trades made were selling options on $FRC. Due to the dire situation of the bank, there is a high probability that the option holders will "exercise their rights early." Lastly, they explore a new angle of decentralized finance. This is the ability for retail traders to act like a prime brokerage AS WELL AS take advantage of a prime brokerage. This is something that has historically only been available to institutional traders. This new type of vehicle allows individuals to operate interest spreads like a bank. With the cautionary tale of $FRC heading the front of the episode, it is essential not to act like $FRC =). As sprocket is a big fan of passive and more conservative opportunities, it is always nice to be the bank if you can be the bank…..but don't be an $FRC.
- 00:00 Disclaimer
- 00:18 Intro
- 02:13 $FRC What is the backstory here, and why should we care?
- 06:25 It seems every week there is always a new 'once in a lifetime event.'
- 09:25 Volatility was uber uber extreme in $FRC
- 11:42 Should you trade $FRC?
- 12:53 Position sizing is PARAMOUNT in trading
- 13:35 Be careful of stocks that are likely to hit circuit breakers
- 15:40 $FRC was hitting the breaker a lot
- 17:51 Should you trade $FRC?
- 18:31 Early assignment risk. What exactly is it? First, let's review what the option is.
- 20:09 When is there an early assignment risk?
- 27:16 sprockets $FRC trade is pretty much for sure an early assignment
- 28:27 Leverage crypto accumulation? Prime brokerage lending in crypto?
- 31:42 Example of this decentralized prime brokerage.
- 38:11 Brokerage side of the house
- 42:37 The retail investor can become empowered with the same tools as 'big money.'
- 46:15 As always, you must UNDERSTAND the mechanics, know WHAT is generating your yield
- 49:55 Conclusion: There is a world of trading opportunities out there, don't just do what two random dudes on the internet do. Learn what you like, how it works, and how to make it work for you.
- 53:16 Outro
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In this week's episode, sprocket888 and viperxl007 look at risk management. Understanding the risk in your portfolio can take a lot of work. There are many different types of asset classes as well as financial products. All this variety can make it hard to compare apples to apples between trading vehicles. Two concepts are discussed to help demystify this. The first is understanding the overall delta of your portfolio. The second is to combine this figure with beta weighting. The combination of these two actions can help objectively look at your portfolio's directional risk. Looking at the delta values of your holistic portfolio will provide you with an objective measure of directional risk. When you take your portfolio and beta weight against something like an index AND look at the delta, you will see a complete directional risk picture.
- 00:00 Disclaimer
- 00:18 Intro
- 01:37 Risk Management: The differentiator between mediocracy and greatness
- 02:48 Consistency is key
- 04:31 Objectivity of 'what is in my basket?" is key
- 05:27 Delta is a measure of directional risk
- 07:33 You can measure delta against anything
- 09:16 Portfolio delta: Measuring total directional risk for the 'whole enchilada.'
- 10:55 Know your delta, know your risk
- 14:43 The delta can help you understand your portfolio view on the market
- 15:25 sprocket888 uses the delta to keep his portfolio comfortable
- 16:32 You can trim deltas by trimming positions
- 17:10 You can also adjust deltas by searching for holdings that will give you the deltas you need
- 17:51 Shorting an index can help reduce delta /MES trade
- 18:30 Can you make money with a low delta?
- 19:08 Premium selling, profiting from neutrality
- 19:46 /RTY profiting from a zero delta trade
- 21:22 sprocket888 shares the targets of his portfolio's metadata statistics
- 23:49 Delta is not just about premium selling. It is useful in MANY aspects of risk management
- 24:37 Looking graphically at sprocket888s portfolio P/L and delta
- 26:29 Reducing risk while preserving profit
- 27:17 Use your broker's tools to visualize how deltas will change with the price
- 29:31 Delta neutral is certainly not 100% passive
- 30:21 The real takeaway is that knowing your delta will help you manage your risk level comfort
- 32:10 Delta and Beta Weighting are tools for you to leverage to YOUR style
- 34:02 You can beta weight against anything, but a related index is usually best
- 35:34 Conclusion: Risk mitigation is a differentiator. Know your delta know your risk
- 37:36 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 discuss their general thoughts on the current market and the direction that it is heading. viperxl007 opened up a new 1% trade buying a call in $AAPL. viperxl007 shares his thoughts on the trade entry and what he wants to get out of the trade. sprocket888 takes the opportunity to provide a tangible example of this trade to the 'theta shot clock.' This is a critical aspect to understand when trading options. This episode was plagued with audio issues where sprocket's local audio was not recorded. The audio glitch created a double recording and splicing back into the episode.
- 00:00 Disclaimer
- 00:17 Intro
- 01:40 Thoughts on the market and general direction and sentiment
- 04:46 Trading should be able to profit no matter the market direction
- 07:17 Looking at the charts of the S&P
- 11:08 Inverting charts can remove bias in evaluations
- 12:30 viperxl007 got another 1% trade on the books in $AAPL
- 13:22 sprocket888 has trouble finding trades that fit 1% based on his flavor of trades
- 17:37 viperxl007 breaks down his trade entry on $AAPL
- 24:54 Understanding that theta is a shot clock working against you when buying options
- 30:32 viperxl007 reflects on the theta 'shot clock.'
- 33:00 Conclusion: There is always more to learn. Upcoming excitement with earnings kicking off.
- 34:54 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 discuss what sources they use for market information. They don't use these sources of information for exact trades to take; instead, they use these feeds to know what sectors and industries might have interesting plays opening up. They use this information more like a pre-screener for their screeners. The trade mechanics that the trade are well established, and the information-gathering phase is about what areas to look into for the technical setups that they like to trade. After this discussion, viperxl007 has two trades to review in retrospection. These were 1% trades he has taken in recent shows and finally closed out. The first up is a trade on $AMC, still doing meme-like things, but that is not reason enough not to try to make a quick buck. Lastly, viperxl007 looks back on the $TFC play.
- 00:00 Disclaimer
- 00:18 Intro
- 02:01 Where do we get our trade ideas?
- 03:18 viperxl007 shares his information-gathering process
- 07:59 There is value in having a ticker bench to trade on
- 11:01 sprocket888 shares his sources of information
- 14:40 viperxl007 agrees to keep aware of what is getting talked about and can have value as a data point
- 19:10 The news gathering is more of a pre-screener for sprocket888. It is about what 'lake' we will go fishing in, not what we are fishing for.
- 23:11 sprocket888 also listens to the chatter on social media
- 25:38 Gathering news and data on the macro picture is NOT a step one to start trading
- 26:53 The WSJ is an excellent resource to begin reading no matter where you are in your journey
- 28:18 1% Trades viperxl007 is cleaning up
- 29:54 $AMC retrospection on the trade by viperxl007
- 36:17
- 38:31 $TFC retrospection on the trade by viperxl007
- 43:07 When you are buying options, you are on the clock, don't lose sight of that
- 48:57 NEVER exercise your option early…..there are nearly no cases in which this makes sense
- 51:00 Conclusion: Find the source of information that interests you and stick to consuming it
- 53:12 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 does a solo show and focuses the topic on selling options. This is something that sprocket888 is constantly dropping in Discord about potential option-selling plays. Traders that need to become more familiar with options can find them intimidating and confusing. The best way to correct this is to understand what something is and how that something works. This is precisely what sprockt888 does in this episode. There were two recent trades in banking names, $WAL and $FRC. sprocket888 sold put options in these names, and they were a textbook example of how and why the strategy works. After explaining the 'mountain' of premium mechanics, he reviews those two specific trades to give a tangible real-world connection to the lesson.
- 00:00 Disclaimer
- 00:18 Intro
- 01:24 Premium selling mechanics displayed perfectly in two recent trades
- 02:48 Requirements of the trade setup
- 03:17 Liquidity is a must for two key reasons
- 04:48 THE most crucial factor: Elevated volatility
- 06:39 The second most crucial factor is: Days to Expiration
- 09:00 Visualize the elements of value
- 09:09 There is an INtrinsic value and an EXtrinsic value
- 11:54 Everything about premium selling is in the EXtrinsic value
- 13:01 EXtrinsic value is highest at the money and falls off away from there
- 14:18 The mountain of extrinsic value is set to erode
- 15:24 Direction plays a role, but a smaller one
- 16:23 You can be wrong on direction but still profit
- 17:07 Ups and Downs on the trade can look odd
- 19:42 Premium will buffer you if your direction is wrong
- 20:33 First textbook example: $WAL
- 25:14 $7 in 'protection' to the downside
- 26:02 All the stars aligned on the $WAL trade for a good profit
- 28:22 Example 2: $FRC did NOT move in the expected way
- 30:02 $FRC Volatility is slow to contract
- 31:28 Direction was wrong, and I was $5 in the money
- 32:54 Despite being very WRONG on the price of the stock, there was STILL a profit to have
- 33:24 Conclusion: Selling premium, when done in the right conditions, will provide a high probability of success in trades
- 36:45 Outro
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In this week's episode, sprocket888 and viperxl007 come with a triple threat. viper starts with not one, not two, but THREE 1% trades. They are in some high-volume names: $FRC, $AMC, and $TFC. sprocket has two trades from the rubble of the banking panic in $FRC and $WAL. Then to wrap up the trifecta news on $COIN hit today as they have been served a 'Wells Notice' from the SEC. This caused the stock to take a $20 haircut after hours. This notice is a boiling over of tensions that have existed for a while now between regulators and the crypto industry. There is sure to be a lot more action on this topic to follow in the near term.
- 00:00 Disclaimer
- 00:18 Intro
- 01:38 viper is back in the saddle with THREE new trades
- 02:41 viper is still in search of his style and his zone
- 06:31 First at bat a scalp on $FRC
- 10:57 Second hitter found $AMC
- 13:08 Third up is an $TFC play
- 15:29 Panic breeds opportunity, be careful to make sure the house is not still on fire
- 17:04 This banking crisis is a bit different than in 2008
- 19:21 sprocket saw a play in $FRC
- 20:27 $FRC volatility is off the charts
- 24:05 $WAL was off the charts, but coming back to earth
- 25:03 Caution to consider when BUYING high volatile options
- 30:36 $AMC was a good play from a volatility expansion basis
- 34:46 viper is playing the opposite approach as sprocket when it comes to premium
- 38:17 Depending on the conditions, the greeks can battle each other
- 39:41 $COIN is something to keep an eye on as panic could ensue
- 42:06 $COIN and the 'Wells notice" a standoff just waiting to boil over
- 50:58 Conclusion: There are always plays to be made out there. Keep your eyes open.
- 52:08 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 take a look at the SVB back collapse and the connections of that to crypto stablecoin. This is an exciting interaction to take a look at. This dependency linkage from USDC stable coin to hard bank assets is an ironic linkage for a technology that is supposed to be an emerging alternative. The discussion shows how intertwined everything is, despite the best efforts to isolate. The main observation and takeaway from the $SVB collapse and USDC knocked-off peg are always to be ready. Ready in that you understand the WHY and the HOW things trade and work. This will allow the trader to keep a level head while the rest of the market is in panic mode. The ability to remain calm and level-headed creates a situation where you can spot pockets of value trading at a discount. These pockets will allow you to profit amid a crisis. The last topic viper visits in this episode is another look at the $SESN ticker one last time. This is one last time because the company has been acquired and is now trading under a new ticker. This old flame had just enough energy to burn viper one last time.
- 00:00 Disclaimer
- 00:18 Intro
- 01:20 The last open 1% trade, $C, is a loser
- 02:56 Silicon Valley Bank, SHUT DOWN
- 08:31 Tied up in T-Bills, and not the shorter ones
- 10:30 SVB got hit with a 'Perfect Storm.'
- 16:11 Stablecoins are an essential component in the financial system
- 18:56 USDC is the stablecoin at the heart of this regional banking turmoil
- 20:02 The backing of the USDC is published and transparent
- 21:26 The cash of the stablecoin is located in these troubled banks
- 23:46 USDC is knocked off its peg
- 25:01 Emotions take over in the state of panic
- 29:07 Emotions can strike when you least expect it
- 31:33 Panic can bring profit to those with a level head
- 33:57 Knowing the MECHANICS can help you make keep calm
- 35:31 $SESN the beatings continue
- 36:08
- 36:23 viper locked in another losing trade with $SESN
- 40:32 Stocks CAN go to 0, but often there is a deal that gets made
- 43:31 Conclusion: THIS is a premium seller's market; keep your eyes out for opportunities
- 45:10 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 tackle the big topic of futures. There is a lot to unpack with this topic, but looking piece by piece, it is not as complex as you might think. This is by no means an in-depth look. Instead, they cover the very basics of futures and options on those futures. The key points discussed are the greeks on the options and how they vary during different expiration time frames. The properties of these greeks and how they behave can be used to exploit interesting trading styles depending on the expected price movement and the time left in the option.
- 00:00 Disclaimer
- 00:18 Intro
- 01:20 The aspects of futures trading that we will cover
- 02:20 S&P Index Futures
- 03:23 Equity Futures trade nearly 24x5
- 04:10 Futures Expire
- 05:32 Futures are not all the same size
- 07:44 Futures have added tax benefit
- 09:52 You usually have to ASK to be able to trade futures
- 10:27 Futures ALSO have options
- 10:39 Visualize the margin requirements
- 11:07 /ES margin requirement
- 12:39 /MES margin requirements
- 13:06 SPY Margin Example
- 13:48 Options contracts in futures are 1:1
- 15:25 These options expire too
- 15:45 American or European
- 17:13 cmegroup.com is the place to go to find all the spec sheets
- 22:46 viper is trying something new
- 28:58 Round-the-clock trading is interesting, considering other regions of the world
- 32:55 P/L on an option is not always a linear relationship from the underlying
- 42:48 Options can be used to trade shares synthetically
- 43:43 When using options for shares, consider minimizing the impact of the 'greeks.'
- 45:32 The farther out the time to expiration, the more 'linear' the price impact is
- 48:14 Visualizing the effects of the 'greeks' and days to expiration (DTE)
- 50:21 Gamma, on low DTE, this is the turbocharger
- 54:37 Real pricing of options and DTE
- 57:31 Knowing HOW the machine works will elevate your trades
- 61:35 Conclusion: Emotions will strike at any moment. Stay vigilant
- 64:31 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 reflect on three months of 1% trades. They also go into great detail surrounding 'The Wheel.' viper covers his learning experience with the wheel on $T. sprocket covers his experience with the wheel and the type of environments he likes to trade it in. In the most recent 1% trade, sprocket returned to his roots and took up a short volatility trade in $BYND, which was a textbook winner. The real value in the 1% trade challenge is all about looking back and discussing the logic and the thoughts of the trade from open to close.
- 00:00 Disclaimer
- 00:19 Intro
- 01:37 Looking back at three months of 1% trades
- 06:26 Wheeling on $T
- 07:49 sprocket's view on spinning the wheel
- 10:28 Retrospection on $T
- 22:39 Extra points on the wheel
- 25:32 $BYND earnings retrospective
- 29:29 Volatility crush, it is REAL
- 32:12 Conclusion: The real value in the 1% trade is the reflection
- 33:22 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week’s episode, sprocket888 and viperxl007 catch up on the 1% trades. sprocket opens a new trade on $BYND, and viper gets close to the end of the $T wheel he has going. They also discuss mental games. sprocket opened up a hedge in early Jan to counterbalance his long positions. This hedge has… Read More »Attempting to look $BYND for profit.
In this week’s episode, sprocket888 and viperxl007 look at recent market movement and recap the status of the 1% trades still in flight. viper then lays out his latest 1% play on $T. The strategy on this one is known as ‘The Wheel.’ This is an options strategy where you start by going long in… Read More »The wheel, transporting traders to profits.
In this week’s episode, sprocket888 and viperxl007 celebrate the 100th episode milestone. The celebration was a blast to record. Unfortunately, there was an audio snafu where sprocket’s mic did not record to disk. This led to some heavy dubbing after the show to recover the content. The content was too good to leave behind. To… Read More »A new trader’s confusion, The episode 100 Panel
In this week’s episode, sprocket888 is joined by viperxl007. We start with the big FOMC news of the 0.25% rate hike. From there, we head to the several 1% trades that have closed out. As we are always targeting to get better, we look to see if there is anything to learn from them. sprocket… Read More »1% Trade Reflections, Learning from the past.
In this week’s episode, sprocket888 covers a 1% play on $AMZN earnings. More important than the actual play is the methodology and strategy used behind the trade. This approach is how sprocket targets his earnings plays, selling volatility. sprocket steps through the whole process, starting with what the objective is. He steps through, screening, clearing,… Read More »1% Earnings trade, Iron Condor on $AMZN
In this week’s episode, sprocket888 is joined by viperxl007. In the Blockhead Traders discord, there is an activity on some Fridays called “The Gamma Lotto.” The week we start by explaining what the gamma lotto is, why it does what it does, and showing you how it is played. The mechanics at play here help… Read More »The Gamma Lotto, little trade, big excitement.
In this week’s episode, sprocket888 is joined by viperxl007. We start the year 2023 with a 1% play on $SPLK. This is a trade that viper has found and decided to take. During this trade, viper started to have some second thoughts about this play after entering. viper talks through some risk mitigation efforts deployed… Read More »Crypto Regulation, is this the beginning of the end of crypto?
In this week’s episode, sprocket888 is joined by viperxl007. The end of 2022 is finally here. This has been the worst-performing market since 2008. sprocket and viper bid farewell to a year less than optimal for trading. Next, they recap where the open 1% trades are sitting. sprocket then discusses a tight play that he… Read More »Threading the needle on $COIN.
In this week’s episode, sprocket888 is joined by viperxl007. In this episode, we update you on where all the 1% plays are sitting. Then sprocket lays out a new 1% play on $C. This play is a gamble, as there is a high probability of becoming a 100% loser. That is considered when determining the… Read More »A $20 Scratcher and an update on Chikn.
In this week’s episode, sprocket888 is joined by viperxl007. In this episode, we look at recent market developments with the raising of the core interest rate and what this could mean for traders. Then we check in on the $UMPQ play that viper had going. The play is now off the table, and viper does… Read More »Futures, bringing excitement outside of day job hours, $/MCL.
In this week’s episode, sprocket888 is joined by viperxl007. In this episode, viperxl007 is getting BACK into the equities game. He has never really left watching equities, but in early 2022, he started pulling capital from equities and spending more time trading and investing in crypto. viper is taking the 1% challenge to bring money… Read More »Viper is back in the equities game, 1% play on $UMPQ and $/ES
In this week’s episode, sprocket888 is joined by viperxl007. First up they take a look at the latest comments by Jerome Powell. After that, sprocket reviews the 1% challenge with viperxl007 to see his thoughts on the challenge. The episode is wrapped up by revealing and discussing the first 1% play on $KSS. There were… Read More »The inaugural 1% Play, a bullish vertical on $KSS.
In this week’s episode, sprocket888 flies solo and lays out the details of “The one percent challenge.” This challenge is about building a good habit of starting slow and steady inflows into a trading account. The name is derived from the goal of depositing 1% of your weekly income into a brokerage account. The median… Read More »The 1% Challenge
In this week’s episode, sprocket888 is joined by viperxl007. The collapse of the second largest crypto exchange, FTX, has engulfed news feeds. As we have been traders and prominent crypto industry advocates, we take a look this week at the FTX situation and offer our thoughts. First, we focus on what happened by looking at… Read More »FTX Implosion: Is this the beginning of a larger crypto collapse?
In this week’s episode, sprocket888 is joined by viperxl007. 2022 is winding down compared to 2021 the performance of our portfolios has been terrible. This episode is a working session to see if there are aspects of PA that can be combined with the mechanical option strategy that sprocket888 uses. To analyze this, we use… Read More »Can you make mechanical PA and option selling?: A working session.A
In this week's episode, sprocket888 is joined by viperxl007. First, we round out the $AMZN play from last week's show. In that show, we discussed the mechanics of a trade around earnings. In this episode the earnings event is over, and we dissect the movement after the announcement and talk through the continuation of the mechanics. Spoiler alert $AMZN moved WAY outside the expected move. The second topic for the show is the November FOMC meeting. Markets and media sure hype up the FOMC meetings and the impact that they have on the market…but the question that we tackle is 'Does the FOMC really cause market pivots?". We plot out every FOMC meeting in 2022 and chart out the rate movements announced and the impact on the price action. Spoiler alert, there is really no correlation to market pivots at all. This observation lends a lot of credence to the mantra "News is Noise".
- 00:00 Disclaimer
- 00:18 Intro
- 01:32 $AMZN Earnings, did we win?
- 03:06 $AMZN going INTO earnings what was it shaping up as
- 08:23 Earnings are NOT for the faint of heart; noobs, beware!
- 13:01 REMEMBER, the play on $AMZN was volatility crush, not price movement
- 16:55 At lunchtime, that earnings play was at 97% profit potential
- 23:28 FOMC meeting and rising rates, does it change the market?
- 26:06 Does FOMC meetings create market pivots? We look back at 2022 to see.
- 29:40 Plotting out the FOMC releases
- 33:06 Potential hope is emerging (or at least the optimist sees it)
- 39:03 Time will tell on this theory; mark your calendars
- 40:22 Conclusion: Earnings are a pure coin flip but can be a real rush of adrenaline
- 43:07 Outro
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In this week's episode, sprocket888 is joined by viperxl007 to look at playing earnings with options. Earnings are a binary event where volatility builds leading into the event, and then post the event, volatility collapses. This is an excellent setup to play with options. The play that we look at in this episode is selling the option premium. sprocket goes through his checklist of evaluation criteria before he chooses to play any particular event. There are seven things he considers, three of which are dealbreakers. The upcoming earnings of $AMZN are the underlying used to demonstrate the practical application of these items.
- 00:00 Disclaimer
- 00:19 Intro
- 01:22 Looking into the practical application of premium selling around earnings
- 02:17 Options earnings play criteria to consider
- 03:15 Consideration 1: Liquidity is KING, first gate; is it liquid?
- 06:14 Screener used to filter for plays (high level)
- 09:02 Consideration 2: Historical Volatility elevated?
- 11:52 Consideration 3: Position size, is it appropriate?
- 13:26 Option earnings play is NOT a play on price; it is a play on volatility
- 16:32 Graphical picture earnings and volatility
- 17:39 Nice to have considerations before the play
- 18:15 Consideration 4: Is the spot volatility high enough?
- 20:09 Consideration 5: Is Price in an uptrend?
- 22:15 Consideration 6: Are you OK with owning the shares?
- 26:18 Consideration 7: Does PA support the strikes?
- 27:07 How to read the option chain
- 31:30 There is a tradeoff in premium volatility vs. time. You have to assess this for your trade thesis
- 34:50 $AMZN Price Action evaluation by viperxl007
- 40:51 Don't lose sight that his play is about volatility contraction
- 41:13
- 42:32 Recap on the checklist for using options to play earnings
- 46:20 Conclusion: Options earnings plays are about volatility contraction
- 47:49 Outro
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In this week's episode, sprocket888 manages his trade on $AMZN by rolling out the option in time one month. $AMZN was in an interesting position where it was still ITM, but volatility had increased. This situation has allowed sprocket to collect a very rich premium on the roll (more than average). Then sprocket uses the example of $AMZN to have viper talk through some Price Action. sprocket struggles with fully grasping price action and how to read it. In this episode, viper drills down to show some aspects against $AMZN. They then wrap up with how to use the Price Action and where it stands today to make a potential upcoming trade.
- 00:00 Disclaimer
- 00:16 Intro
- 01:21 A look back to past $AMZN trade by sprocket
- 02:36 Managing the $AMZN trade
- 05:25 $AMZN Volatility ramped to the 95% range
- 07:09 This roll lowers the RISK of the initial trade while boosting the upside
- 08:56 viperxl007 feels PA is PRIMARY, not SECONDARY
- 09:56 Why sprocket calls PA SECONDARY vs. PRIMARY
- 11:06 The $AMZN play, IF viper had bought shares, he would be losing right now
- 12:11 Take a look at PA charting, repetition, repetition, repetition
- 13:39 Let's use $AMZN as a PA example
- 16:21 Identifying the ranges that we care about
- 17:05 Where is the move that started the high we care about?
- 19:11 Also need to mark the high that we achieved
- 20:46 We also mention local lows and local highs
- 22:31 Don't jump too fast. WAIT for confirmation!
- 26:10 Another example of the need to WAIT for the retest
- 27:24 This is the moment the reversal in trend was confirmed in $AMZN
- 28:09 Where we are today in $AMZN PA
- 29:38 sprocket's PRACTICAL actions from the current PA on $AMZN
- 32:56 viper comments on the chart application of recent PA
- 35:57 Look out for accelerants!
- 37:17 What would sprocket do here if he was not already in a trade on $AMZN?
- 40:53 You can convert the chart to a line chart to smooth the noise
- 43:05 The key to mastery is practice, practice, practice!
- 44:48 Conclusion: Practical application is the best teacher
- 45:25 Outro
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In this week's episode, sprocket888 and viperxl007 look at shorting stock. sprocket discusses how this year has been challenging as the markets have been on a march seemingly to zero. The trend all year has been bearish, which is quite a change from previous years. There are calls to simply "short" stocks in a down-trend market. However, this is not as easy as it sounds for sprocket. This episode explores his struggles with the concept and viper gives some pointers on shorting and helping demystify when it might be an appropriate time. The section towards the end has a great segment about the current price action WHERE we should be looking for shorts.
- 00:00 Disclaimer
- 00:17 Intro
- 01:18 sprocket has had a rough 2022 as the market seemingly is headed to zero
- 02:33 What exactly is a 'short'?
- 03:36 sprocket talks through his mental block when it comes to shorting stocks
- 07:48 Fear of shorting is a widespread thing
- 09:49 What is a 'short squeeze'? sprocket explains
- 13:00 Let's take a look at a short in $ETSY
- 18:05 In a massive short squeeze, you must be careful of market halts, a look back at $GME
- 22:02 Know the underlying market trend before you look for longs or shorts
- 25:18 When do we judge the market has turned?
- 31:22 viper explains when we switched from a long-term bull to a bearish trend most recently
- 36:05 Where in today's market would you start looking for shorts?
- 41:11 Conclusion: sprocket is willing to take another shot at shorting
- 42:41 Outro
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In this week's episode, sprocket888 and viperxl007 have a transparent discussion on when to exit a position that only looks to be going higher. Both sprocket and viper have been investing in a crypto ecosystem called chikn.farm. They entered this with little expectations of what would unfold. The ecosystem has been on fire lately, and sprocket and viper have unrealized gains above 400%. However, cashing out now would mean stepping away from the game and the future payments that could be lurking. Staying in the game puts at risk all the unrealized gains. This is precisely the situation we discuss trying to avoid by defining an exit plan before opening and trading position. There is no conclusion to what we will do, but this episode focuses on the psychology that makes decisions difficult.
Some previous episodes on Chikn.Farm
https://www.youtube.com/watch?v=Mcq46e_aYzU
https://www.youtube.com/watch?v=uePJ_grdGlw
https://www.youtube.com/watch?v=KsoHMgoTkKc
00:00 Disclaimer 00:19 Intro 01:04 The trouble of not having an exit plan 03:55 viperxl007 also did not have an exit plan, but this was more by design because there were ZERO expectations 07:02 viperxl007 recently has shifted perspective to native token vs USD view 07:59 Quick recap of the chikn ecosystem 17:14 sprocket888's situation on unrealized gains in his chikn farm 22:54 Selling is NOT easy if you don't have a plan……temptation to linger is strong! 25:40 Price action on the yield values in the chikn ecosystem 31:52 Some exit plan ideas from sprocket, but it is hard to make an objective plan while you are in the trade 36:16 Yielding assets have a trade-off when you sell 40:09 AVAX staking is more like investing in the SPY vs a singular company 41:21 Conclusion: The struggle is real, and you are not alone if you find yourself in the same boat 43:16 Outro
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In this week's episode, sprocket888 looks at two of his open trades. The first is on $AMZN, and the second is on $CVNA. Both of these trades were premium selling trades. Both plays have been going more and more in the red but have not reached a point to lock in the loss yet. This condition will allow us to examine the factors that contribute to the pricing of the option to help understand how factors like volatility, price, and time intersect and impact the pricing of the option. These open trades are getting closer to the point of "management" but are not quite there yet. sprocket will keep tabs on these plays as time marches on.
Opening of the $CVNA play: https://youtu.be/WEFmWqoyn8E
Opening of the $AMZN play: https://youtu.be/9og4LrI7gu0
- 00:00 Disclaimer
- 00:19 Intro
- 01:00 Checking in on open plays $AMZN and $CVNA
- 01:58 $AMZN checking in
- 04:02 $AMZN, the impact of expanding volatility
- 07:48 $CVNA, where does the trade stand at this moment
- 11:08 $CVNA, also experiencing significant volatility expansion
- 12:31 Conclusion: $AMZN and $CVNA are not looking good, but the trade is not over
- 13:48 Outro
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In this week's episode, sprocket888 and viperxl007 discuss a new project that they found called 'Forum.' This project aims to allow individuals to combine resources while safely preserving governance over the pooled resources. viper and sprocket discuss how this could be very interesting to allow a small group of retail traders the ability to pool resources to run a blockchain validator. Before they get into the detail of the project Forum sprocket888 walks through a surprise victory on $VERU. This trade was opened up as a part of last week's episode and quickly reached the profit targets and was taken off the table for profit. The interesting fact here is that the stock actually lost 28%, but sprocket was still able to get about 35% of his profit. This was due to the power of a severe volatility contraction. This example of $VERU highlights the importance of NOT overlooking how much influence volatility has on premium price.
- 00:00 Disclaimer
- 00:19 Intro
- 01:28 $VERU booking the GREEN
- 02:11 Refresh on the details of $VERU
- 04:12 Stick to the original plan; take it OFF when the trade is DONE!
- 05:01 Visualization of the volatility collapse, FDA event postponed
- 06:12 Closer look at the $VERU PA
- 09:44 Big goals, staking in $AVAX
- 14:29 What does the PA look like with the $AVAX these days
- 15:03 Two big things: The network needs to stick around, AND you need a significant amount of capital
- 18:10 Validators don't do this for free
- 20:12 $AVAX staking has a unique risk-averse protocol to validate for
- 21:52 If you are a validator, you can also have others delegate to you and charge a small fee for that
- 23:47 How does a typical retail trader get enough capital to validate?
- 28:35 Project Forum looks to solve the dilemma
- 33:47 Conclusion: Don't overlook the power of volatility! Stay tuned for more on Forum as we explore it
- 35:42 Outro
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In this week's episode, sprocket888 and viperxl007 discuss the September CPI number's most recent rattling of markets. This CPI number caused one of the most significant single-day declines in recent history, launching volatility up. The rise in volatility created an opportunity for some short premium trades. sprocket888 takes a look at two new ones that he put on this week, $VERU and $CVNA. Then we look at how the ongoing $AMZN trade is going. This $AMZN trade creates some discussion from viper about how one might lower the size of the trade because many portfolios are just not large enough to be trading 100 shares of $AMZN. When you need to control the trade size, this is where an option vertical comes in. An option vertical is when you add a leg to your option trade to create protection. In this example of $AMZN, we demonstrate how you can add protection by BUYING a further out-of-the-money option after selling a PUT.
00:00 Disclaimer 00:18 Intro 01:04 CPI came out and ROCKED the market 03:56 In the wake of a panic, premiums are elevated 05:31 Play 1: $VERU, PURE Volatility 07:33 $VERU Stat sheet for trade entry 11:42 Use the Bid/Ask spread to gauge liquidity 12:27 $VERU Chart for the duration of the play 13:54 viper does not like the look of the Volume on $VERU 15:12 Play 2: $CVNA, a more traditional premium selling trade 15:18 $CVNA Stat sheet for trade entry 16:59 $CVNA Chart for the duration of the play 17:45 $CVNA this is not a terrible place to take a long either 18:14 viper likes the $CVNA chart much better 19:25 Play 3: $AMZN, how is it going? 21:40 $AMZN has not gone anywhere, but we are making money! 22:47 viper likes the play on $AMZN, but is it "too big"? 23:31 How to make a smaller trade on a big stock like $AMZN 24:27 Visualize the protection that can be deployed for $AMZN 26:51 How does this protection work? 29:35 This trade with protection does not look so attractive 31:01 Hypothetical drop to $100 for $AMZN 32:15 Conclusion: This volatile market is just perfect for selling premium 33:31 Outro
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In this week's episode, sprocket888 and viperxl007 take a look at a way to add a little spice into your option selling life. This type of trade is not recommended for beginners. However, once you have the options basics down and you really understand what is going on with all the mechanics, an earnings trade can be a way to add a little excitement. The idea is that a known binary event, like earnings, can have a HUGE build-up in volatility and this build-up will rapidly deflate once the event is done. This is EXACTLY the mechanic that premium sellers look for, they sell premium when volatility is high and buy it back to close when it is low. At the time of earnings, this contraction is expedited and the timing of this contraction is known. With most things, it is not a sure thing, but one where often the odds are in your favor. In this episode, we dive into the mechanics of the earnings trade for $DOCU. sprocket makes a real trade in the underlying, and at the end of the video, we reveal how the trade played out. There is a lot of time spent in this video analyzing ALL possible outcomes of the trade. This is a CRITICAL step because as a trader you MUST be prepared for whatever the market dishes out.
- 00:00 Disclaimer
- 00:18 Intro
- 01:12 Keeping tabs on the $AMZN trade
- 03:52 Refresh on the $AMZN details
- 04:49 What makes a good earnings play? Looking at the mechanics
- 06:07 Why play earnings?
- 07:50 The play is a 'Strangle', what the heck is a 'Strangle'?
- 08:48 Strangles increase risk because you can now lose money with two different moves
- 09:25 sprocket likes to start his strangles around a 16 delta
- 11:35 Worst case situation with a strangle
- 12:23 What does it mean to be 'SHORT' stock?
- 14:42 A few other ways to think about shorts
- 16:03 Shorting shares does carry infinite risk
- 16:54 viperxl007 takes a look at the PA on the $DOCU trade
- 23:23 Current price of $DOCU is in between two REALLY interesting levels
- 26:52 Pull all the PA together here is what we are looking at
- 30:24 A different look at the P/L and probability
- 33:22 Be good with ALL possible outcomes!
- 34:28 The RESULT of the trade (Fast forward to THE FUTURE)
- 40:13 Looking at the closing final details of the $DOCU earnings
- 43:04 Conclusion: Earnings plays are another dimension to option selling that can offer a little spice to your life
- 44:05 Outro
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In this week's episode, sprocket888 and viperxl007 talk about a new play that was made this week on $AMZN. While editing last week's episode, sprocket noticed that the $AMZN trade that was talked about got a bit more tempting. Sprocket entered the trade, so there is a recap of this trade. viper calls out that the naked put can be a bit intimidating for new traders. viper and sprocket then take a look at an alternative trade called a "Covered Call". This trade is made with the same thesis as the naked put but is more in the comfort zone of new traders. There is a discussion on the mechanics of this trade and how one would engage in this trade with the same underlying of $AMZN. The drawback to the covered call is that you must own 100 shares of what you want to trade, this can be cost prohibitive depending on the stock and the portfolio size.
- 00:00 Disclaimer
- 00:19 Intro
- 01:21 $AMZN continues to be an interesting play given where it stands in the economy
- 03:21 $AMZN actually looked better, sprocket888 jumped in
- 03:56 Updated P/L chart for $AMZN play
- 06:14 Only thesis is $AMZN won't drop BIG
- 06:38 viperxl007 likes the trade backed up by monthly price action
- 08:39 The $AMZN details about the trade mechanics
- 10:16 Volatility went up, so we are able to get the same return at the better probability
- 12:07 A different options play that can be more natural, is the Covered Call
- 16:24 What can you collect in premium for the Covered Call?
- 17:26 Selling the Call allows you to collect money while you wait to sell
- 18:16 Premium will help you lower your cost basis and boost your selling profit
- 20:30 The Covered Call is a PERFECT entry trade for a beginner, it is safe and can teach
- 22:33 Psychology matters, and marking easy wins helps boost confidence
- 23:54 Constant losses can drive you to take bigger risks
- 26:14 Conclusion: Options really can add depth to your trades and CAN be safe
- 27:03 Outro
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In this week's episode, sprocket888 and viper go back to the basics of option selling of the simple selling of a PUT option. This is one of sprocket's favorite things to trade. In this episode, we use $AMZN as the example ticket. We examine how selling a PUT can give you a "margin of error" to allow you to profit in a multitude of scenarios. Option selling is NEVER exciting or glamorous; it is boring and consistent. It is examined that selling options will result in a profit in most price action events. The option statistics and pricing model is more objective than you think. It is always important to view your trades in a percentage return based on the amount of capital you need to use when making the trade, also known as RoC; return on capital.
- 00:00 Disclaimer
- 00:19 Intro
- 01:25 Back to the basics of options, profiting without the need for time commitments and availability during market hours
- 03:29
- 03:30 $AMZN as a PUT selling example
- 04:20 $AMZN Levels
- 05:39 A look at the "margin of error" option selling affords you
- 07:14 $AMZN strike example and the profit loss mapping of that strike
- 09:43 The basic PUT play can wield tremendous power IF you take the time to understand it
- 12:10 One way to look at option selling is not to declare what direction an underlying is going to go but where it will NOT go.
- 13:03 Don't lose sight of the TIME range for the option; this is a time-bound trade.
- 14:07 A detailed look at the numbers behind this $AMZN example
- 14:49 19% potential upside for a 2mo window
- 17:43 What is this "DELTA" you always hear about?
- 19:25 IF you do a "Cash Secured" Put, there is no buying power expansion, but your capital usage is higher.
- 21:41 Cash Secured PUT would drop the 19% return to 3.5%
- 23:06 It is tempting to look at this trade as a DULL trade that will miss out on profit if $AMZN explodes UP
- 24:53 95% of those that try to day trade and time the market will lose money
- 27:28 How often does a 19% move happen?
- 30:00 You CAN close options early and book your gains and play again; you don't NEED to go to expiration
- 31:39 Even when you THINK you will nail it, your emotions will mess with your head
- 34:50 There is NOT such thing as EASY MONEY!
- 36:30 No matter your playbook, ALWAYS have your plan BEFORE you enter
- 38:52 Make sure you always compare plays with PERCENT returns, NOT Raw dollars
- 39:32 Conclusion: Don't write off option selling; it does work, remember it is BORING
- 41:05 Outro
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In this week's episode, sprocket888 and viper give their views on the current market news. The viewpoint has led sprocket to make a play on the index of the Russel. In this episode, we look at all angles of this trade. viper walks through how he marks up the Russel for price action levels. He concludes critical levels that he sees before sprocket reveals his trade. sprocket gives his view on the Russel and how his thought process looks at volatility. The episode highlights how different traders utilize the same tools and often come to similar conclusions using different approaches. In this case, viper arrives at his position by looking at price action first. sprocket looks at strikes that make sense from a premium selling perspective and THEN checks the chart to verify the trade is a sane trade. The takeaway in this episode for the view is that practicing charging price action will boost your confidence in making trades. Charting is a great way to enhance your entry points once you have other signals that have narrowed your scope into something interesting.
- 00:00 Disclaimer
- 00:19 Intro
- 01:40 Markets are reeling these days and the Fed has said they are going to press the brakes even at the cost of the economy
- 05:02 sprocket dives in to go swimming again with one of his favorite trades on the Russel futures
- 08:45 Chart price action on the Russel
- 22:36 What do all the levels show us on the Russel in the present day?
- 25:07 The details on sprockets play on the Russel (sprocket looks first to volatility)
- 26:33 The deets on the trade in table form
- 28:06 When is the right time to SELL premium on the Russel?
- 31:00 Strangles have a lot of management options
- 31:53 Selling under 35 days to expiration will really boost your theta decay
- 34:14 Call and Puts do NOT decay equally
- 37:36 sprockets expected move on the Russel
- 39:23 Depending on your trade a quick chart is often all you need!
- 42:22 Conclusion: Price action charting can really guide you on trade entries and ranges
- 44:09 Outro
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In this week's episode, sprocket888 and viper comment on the latest CPI number that has the market in a buying frenzy. This buying is creating a frequently occurring trend. This trend is sometimes called an ascending triangle. What the trend looks like is coming off a local low price tries to overtake a fundamental level and will be rejected. However, the rejection leads only to a higher low, and the price will try again. Eventually, the buyers overwhelm the sellers, and the price takes off above the level. viper dives into this on several crypto plays. This trend is relatively common in this market, pushing off some severe lows. Closing out the episode, sprocket reminds us that the sun does not stay out forever, and the cheapest time to prepare for a storm is when everyone is playing in the sun.
- 00:00 Disclaimer
- 00:19 Intro
- 00:56 CPI is out, and there are signs that inflation is peaking
- 01:41 CPI is not an absolute signal but rather a data point in a larger constellation
- 03:37 vipers take on the CPI
- 05:58 viper is observing more binary events cramming the throttle on the trend
- 06:32 $BTC Another example of a binary event accelerating a trend
- 08:25 The common trend in the market right now can print fast. $MATIC example
- 16:07 $AVAX forming the same ascending triangle
- 21:20 Nailed two hits......are there more? Going hunting.
- 24:13 Technical Analysis can help you time your moves better
- 26:21 Technical analysis.....Practice, Practice, Practice!
- 27:34 Technical analysis is very similar to reading a map
- 28:19 Once sprocket finds a volatility play, he leverages "map reading" to see when to enter
- 29:28 Selling a naked Put on a critical level is vipers favorite play
- 31:05 Conclusion: Markets are ripping, and risk is coming on, don't forget insurance is cheapest when the sun is shining
- 32:24 Outro
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In this week's episode, sprocket888 revisits his AAPL trade for the 3rd time. This time AAPL has encountered some early assignment risk from a dividend distribution. This is not a very common situation, so we dive into the details to learn something. As a mitigation tactic to the assignment risk, sprocket rolls the AAPL short call out in time. Rolling an option is a valuable and fundamental tool for any option seller. sprocket breaks down the anatomy of an options roll using this specific AAPL example. Understanding how the roll works and why it can increase your net premium is invaluable.
Rotten AAPL Pt1: Managing a rotten $AAPL Pt. 1
Rotten AAPL Pt2: Rotten AAPL Part 2: A detailed breakdown of the thought process
- 00:00 Disclaimer
- 00:19 Intro
- 01:12 Continuing the AAPL Trade
- 01:27 Recent events with AAPL leading to elevated assignment risk
- 02:00 Recap the AAPL trade history
- 05:52 What is a dividend assignment risk?
- 07:05 Squeezing a bit more premium out before the dividend
- 09:31 How can you tell how much early assignment risk you have?
- 11:29 Two pricing components, Intrinsic and Extrinsic value
- 12:49 Dividend risk indicator: Extrinsic value vs. Dividend Value
- 14:32 Early assignment risk is NEVER zero
- 15:05 Why is a roll ALWAYS for a credit
- 17:47 Conclusion: Know all the angles to make smarter trades
- 19:14 Outro
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In this week's episode, sprocket888 and viperxl007 look at a VERY busy news week, packed with earnings, an FOMC meeting, and the first read of Q2 GDP. All this news has filled the market with volatility and is a perfect time to look at how these binary events interact with price action. The theory that sprocket and viper explore in this episode is that binary events don't alone change the direction of the stock. Instead, they are a pure accelerant to the underlying price action. To explore this, viper takes a look at several charts to show how, during the binary event, the expected price action is executed…..just really fast. Knowing this can allow you to create opportunities that can be tilted more in your favor.
- 00:00 Disclaimer
- 00:20 Intro
- 01:21 A look at the monster week of news
- 07:39 sprockets take on the big week of news
- 09:08 vipers take on the big news
- 10:50 A look at price action on binary events
- 12:29 Binary events ONLY accelerate the already existing price action
- 15:45 Event timing and reaction on ETH price action
- 17:55 FMOC June Meeting and Bitcoin
- 22:11 FMOC July announcement and Bitcoin price action
- 26:10 Bitcoin was in the middle of the up trend when the catalyst hit
- 27:07 Let's take a look at the same catalyst and the S&P
- 28:58 Trends are trends and catalysts are there to accelerate them
- 30:41 sprocket is a believer of this as well, binary events are just accelerants
- 31:14 sprocket sells premium into earnings when the PA is looking for a new higher level
- 33:09 This is not absolute, but it IS probabilistic
- 34:14 Tip as MUCH as you can in your favor and NEVER let your losses get out of control
- 35:34 Closing: Spend time observing price action during binary events and from your own thesis
- 36:40 Outro
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In this week's episode, sprocket888 and viperxl007 lift crypto and look at the ugly underbelly. There are many episodes about the space's benefits and high points. This episode takes a look at some of the dangers and ugly underpinnings. The caution can be summed up in the phrase 'if something seems too good to be true, it probably is.' There are a lot of innovative and cool products in the crypto space, but there are even more 'scams,' 'poorly built products,' and 'unsustainable promises' floating out there. If you slow down and spend the time to understand HOW and WHY something works, you are very likely to be capable on your own of sorting the wheat from the chaff.
- 00:00 Disclaimer
- 00:21 Intro
- 01:06 Looking at the dirt under the crypto rock
- 04:58 Moments of despair do not always negate the underlying technology
- 06:00 Insider trading, the age-old financial crime
- 08:08 A lot of crypto today operates like traditional finance without ANY regulation or protections
- 14:28 Celsius began to freeze up with impending insolvency
- 16:21 The Celsius insolvency kicked off with the depeg of Luna
- 21:33 Three Arrows Capital was heavily entrenched in Luna
- 22:17 Ripple effects slammed Voyager
- 23:11 Voyager was similar to Robinhood for crypto
- 24:15 12% annual return with no lockups (Too good to be sustained)
- 25:35 WHERE do the returns come from?
- 26:39 viper used Voyager for a short spell; why did he leave?
- 29:48 Ownership: Don't forfeit this too quickly; it is the magic to building wealth
- 31:35 some platforms allow you to retain ownership
- 33:02 Aave has the same goal as Voyager and Celsius, but total transparency and contract protections
- 35:47 How does Aave protect the lender, and what if the borrower defaults?
- 40:17 Understanding the HOW will go a long way to help you make smarter choices
- 42:20 Crypto is ripe for regulation right now
- 44:15 Closing: Regulation and oversight are needed. Otherwise, we are destined to repeat history
- 47:55 Outro
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In this week's episode, sprocket888 and viperxl007 hit the history books. New CPI numbers came out in the market, signaling inflationary pressure exceeding expectations. There is a lot of uncertainty in the market about what all this will lead to. So rather than participate in the broad speculation, we look back in history at another period with similar economic conditions. This period is around the turn of the decade of 1980. Inflation was sky high, and the Federal Reserve came in with a rate hammer and started aggressively raising rates. This episode focuses on how the market reacted then and how it is reacting now. Nothing in the market is a sure bet, but this is beginning to look like an excellent time to dip into the market by dollar cost averaging slowly. This approach grows exposure without placing too large a bet that could be wrong.
- 00:00 Disclaimer
- 00:19 Intro
- 01:11 Interest rates, recession risk, and markets
- 04:29 What happens when inflation gets high? well, the Fed will step in.
- 06:13 The first half of 2022 has been one of the worst in market history
- 09:03 sprocket's portfolio today
- 10:34 What exactly is the CPI, and why should you care?
- 12:01 It is always important to look at history for similar situations
- 13:38 Let's look closely at the early 1980s, which was a VERY similar situation in the market
- 16:21 The events of the early 1980s
- 17:18 What exactly IS a recession, and how do you know you are in one?
- 18:35 The size of the rate hike in 1980 was a surprise
- 19:49 Key items to look at when we go back in time
- 22:25 1987 Crash (Another data point, different conditions)
- 24:48 Are we in a recession now?
- 25:50 If you wanted to panic, you missed it, don't panic now
- 26:28 The upside potential is building
- 27:30 Looking again at where we are today
- 31:52 There is a lot of value in taking a contrarian attitude
- 33:27 Closing: Know your history and control your opinion bias
- 36:28 Outro
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In this week's episode, sprocket888 shares the detailed thought process that he went through when assigned 400 shares of stock. This includes 100 shares of AAPL and 300 shares of C. Assignment was always possible from the day the trade started. This episode is a continuation of that journey and line of thinking. sprocket walks through the decision to sell a covered call on AAPL. He is holding out a bit more on C, also discussed is the impact of theta decay and volatility contraction on certain moves in the underlying. Overall this is an excellent episode to take a long deep look at some management mechanics when selling premium. Getting assigned is an actual possible outcome when trading like this, and knowing how to navigate it is essential.
- 00:00 Disclaimer
- 00:19 Intro
- 01:01 Managing the rotten AAPL
- 04:44 The detailed breakdown of the thinking behind the AAPL trade
- 08:55 Impact of rallies when considering theta and volatility
- 10:23 Process of choosing the Call strike to sell for AAPL
- 12:17 155 is our strike; how does this fit into the larger picture?
- 13:28 Be prepared for BOTH directional movements BEFORE entering the trade
- 16:33 The OTHER assignment C, the Citi Group play
- 17:40 Financials have much lower volatility than tech, so selling Calls here is quite a bit more tricky
- 19:49 Conclusion: Selling premium is boring but consistent
- 21:40 Outro
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In this week's episode, sprocket888 looks at a way to get paid to take a long Call. The trading mechanic that sprocket loves to deploy is selling short premium. This allows for a high probability of success trades for the trade-off of limited gains. In this episode, sprocket looks to combine this short premium trade with taking a long Call position. Long calls have a minimal probability of winning but have unlimited upside potential. The goal here is to combine these two trades to get the long call at no cost
- 00:00 Disclaimer
- 00:20 Intro
- 01:00 Making an affordable lotto ticket
- 01:43 Call options are similar to lotto tickets
- 03:06 Some Market conditions are prime for a "cheap" lotto play
- 04:16 The farther out in time you go the less impact Theta has
- 05:13 Let's summarize the strategy here for the 'cheap' lotto ticket
- 05:51 Example of this strategy on AMZN
- 06:53 Long Call of AMZN @160
- 08:07 Covering the cost of the Call with a Put
- 08:45 Rather than paying $400 let's COLLECT $400
- 10:51 Recap of the cheap lotto ticket 12:51 Same strategy different ticket AAPL
- 13:39 Charting $AAPL
- 14:01 AAPL targeting the $180 strike
- 15:01 Flipping from spending $600 to COLLECTING $300
- 16:19 Conclusion: As with most things, the best approach is a combination of tactics
- 17:55 Outro
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In this week's episode, sprocket888 and viperxl007 reflect more on the market's reaction to the FOMC meeting. They look at the testimony by chairman Jerome Powell to congress and comment on their view. viper keeps his eye on crypto and is very excited about a change in the Avalanche ecosystem. Traders can now deal on the Avalanche blockchain with Bitcoin DIRECTLY. This is a huge milestone for what it means can be created. Previously traders would need to work with an intermediary to trade Bitcoin on Avalanche (this is known as wrapped Bitcoin). While we are not out of the woods yet, viper and sprocket then talk about some of their near-term plans in the equities market. viper is looking to 'dollar cost average' back into some ETF products ($VOO and $VTI). sprocket recently took the assignment on many shares and will be looking to hold and sell some calls against them. Then they close out with the suggestion to continuously 'drip' into your brokerage account.
- 00:00 Disclaimer
- 00:21 Intro
- 01:09 Shake out from the big FOMC meeting
- 07:10 Many traders today have only ever known low-rate environments
- 08:55 viper has been watching some exciting news in crypto. Bitcoin native on Avalanche
- 15:29 viper discusses his reentry into equities and how this will happen
- 18:55 One of the first products is an ETF tracking the SPY and another for the whole market $VOO and $VTI
- 21:38 sprocket likes the passive drip method into indexes, especially after significant pullbacks
- 22:17 A look at the near-term roadmap for sprocket's portfolio
- 24:32 sprocket is VERY bullish on banks and a large holder of C
- 27:27 Weekly deposits can be an excellent way to drip in capital
- 30:33 Many products in the market don't allow for partial shares, so make sure you check that
- 31:35 Conclusion: No summer doldrums this year; keep up the drip
- 32:24 Outro
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In this week's episode, sprocket888 and viperxl007 look at the recent FOMC meeting and the corresponding 0.75% rate hike. They also dive in and look back at the 20yr and 100yr history of the S&P to see how the current market tracks with some significant historical events. Finally, they glance into the world of crypto to check on how that has been holding up in light of all the market volatility. There are some interesting trends in that market that we take a look at.
- 00:00 Disclaimer
- 00:19 Intro
- 01:00 Here lies Jerry, Jerry is a jerk
- 04:22 FOMC Meeting reflection
- 08:57 Are we panic selling yet?
- 09:36 Looking back at the S&P over 20 years
- 12:58 viperxl007 takes to the chart of the S&P
- 17:50 sprocket is finding himself losing his ability to remain objective
- 19:14 A community can help keep you in check
- 20:16 S&P viewed with ANNUAL candles
- 24:34 Leveraged plays, it cuts both ways
- 27:05 Crypto is starting to look a little disconnected from the broader market index
- 28:31 viperxl007's read on the recent crypto price action
- 30:45 AVAX falls off the 'Cliff'
- 31:56 Bitcoin goes off the "Cliff'
- 32:22 Etherium jumps off the "Cliff" too
- 34:26 Crypto has 'levels' to the tide, some are further out than others
- 35:30 Conclusion: These really are tough times, historically as well
- 36:59 Outro
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In this week's episode, sprocket888 has a loser on his hands. In early April, sprocket took on a position to start building up equity in $AAPL. The thinking at the time was the tech blue chips had started to bottom, and it was time to consider adding some of this into the portfolio. To build this position, sprocket likes to begin by selling Puts and looking for assignments. When the assignment does not come early and the position is not green, sprocket looks to roll the position out for more credit. While in this episode, $AAPL has not done much else but bleed red and rot. This episode takes on the thinking of sprocket and looks at his next moves.
- 00:00 Disclaimer
- 00:19 Intro
- 00:51 Managing a loser
- 02:15 My rotten $AAPL
- 02:42 My strategy for building up a position
- 03:40 $AAPL entry logic
- 05:40 What I do in the last week if I have not been assigned
- 08:45 What does this roll look like?
- 09:46 Taking a look at the AAPL chart
- 12:30 The components of the roll
- 14:07 Conclusion: keep the collection going
- 14:41 Outro
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In this week's episode, sprocket888 is looking for some premium selling plays. We look at three options that surfaced after looking at what the screener turns up. The options cover three different views on the market and three different sizes for portfolios. The first option is $CPB, a play for the risk-averse with a bearish outlook on the economy. The second is with $NFLX, and this is a slightly higher risk play for a somewhat bigger portfolio. $NFLX is playing on a "close to the bottom" thesis for the streaming service. The last option, $SHOP, is the most significant risk and largest size. This option is built on a bullish view that the consumer is not dead and tech growth is coming back. All three plays are compared equally because the play is the same. This offers a good comparison and contrast on how the strategy can be applied no matter the underlying; each will have its unique pros and cons.
- 00:00 Disclaimer
- 00:20 Intro
- 01:07 sprocket888's current trading situation
- 02:06 Taking a look at some premium selling plays
- 02:29 Screening criteria when looking for plays (High volume, High Volatility)
- 03:41 Everything is a cycle (We are looking for the outliers)
- 04:40 The tickers: Soup, Shop, or Show ($CPB,$SHOP,$NFLX)
- 05:10 Same parameters, three applications 05:36 Hungry? Try some Campbells $CPB
- 08:22 Time for a show? $NFLX
- 09:38 When in doubt $SHOP it out
- 10:39 What type of story do the charts tell us?
- 11:03 $CPB Charts
- 13:25 $CPB Probability of profit graph
- 14:12 $NFLX the tale the chart tells
- 16:13 Is $SHOP finally on sale, lets see what the chart says
- 17:35 P/L chart for $SHOP
- 18:11 Recap the three options: $CPB, $NFLX, $SHOP
- 19:22 Conclusion: Is sprocket going to take any of these options?
- 20:11 Outro
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In this week's episode, sprocket888 and viperxl007 offer general comments on the current state of the market. Focusing on the personal impact on their mental state of mind and the things they are doing to stay sane. sprocket888 then offers insight into the worst performing trade to date, $RBLX. The point of looking into this trade is to highlight the concept of making a plan and sticking to the plan. This is an excellent example in which emotions were somewhat kept in check by knowing the current state was always possible when the trade was entered. As with every situation, there were some learning points along the way, and we will stop to talk about those and what might be done differently in the future.
- 00:00 Disclaimer
- 00:20 Intro
- 01:09 Trading is not so rosy right now sprocket and viper reflect
- 06:51 This market really should NOT have been a "Surprise" (If you were paying attention)
- 08:33 It is so HARD to control emotions....no joke!
- 10:42 sprocket888 really has started going back to the roots of his strategy
- 11:38 sprocket's worst performing trade in history, is just a wreck right now!
- 12:29 Losing or winning only happens when you CLOSE, remember this!
- 14:31 RBLX details, how did sprocket get here?
- 18:22 You can't be afraid to sell the covered calls on the way down.
- 20:17 Holding shares underwater and selling calls feels strange
- 22:31 Speculation is not bad.....in moderation
- 23:23 Taking a look at the RBLX technicals
- 26:03 It can be interesting to correlate data sources to form a better picture
- 29:09 RBLX is about making a plan and sticking to the plan
- 30:54 The fine line between sticking to a plan and ignoring your thesis entirely
- 33:11 Conclusion: The most significant frustration is being forced to wait
- 34:08 Outro
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In this week's episode, sprocket888 looks at the general market that has been sliding for about 8 solid weeks. The market has recently touched the definition of a bear market reversal of 20% under the previous high. The mainstream media and social media are filled with bearish news about doom and gloom to come. It is straightforward to get caught up in all this hype. It is just as easy to get caught up in this bearish hype as it is to get swept up in bullish hype too. This is why it is so important to keep well grounded and just DON'T panic. Blockhead traders always talks about having a plan and sticking to the plan. THIS moment is precisely why. None of us know when the pain will end, but it WILL end. This part of the trading is all about mental fortitude.
- 00:00 Disclaimer
- 00:20 Intro
- 00:55 There is panic in the markets
- 01:38 The bad news is ALL we see these days
- 02:34 Just DON'T panic
- 03:55 You PREPARED for this.....remember?
- 06:00 Are you uncomfortable?
- 06:50 Are you too focused on only one side of the story?
- 07:36 What is sprocket888 doing?
- 09:13 Timing the bottom is not a thing, don't tell yourself it is
- 10:25 RBLX is my worst position right now, and it hurts
- 11:59 Conclusion: You can only lose if you quit playing
- 14:36 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 take a look at a crypto strategy that viper stumbled on. In this strategy, you simultaneously take both and Long AND a Short position in a crypto asset. This is done in a leveraged capacity. This will allow the ability to profit in EITHER direction, given enough movement. This is synthetically the same thing in equity options when you buy what is known as a straddle (Buying a Call and a Put). This crypto trade has a defined risk with unlimited return. Some interesting points on this crypto trade make it appealing compared to its equity cousin, the option straddle. Watch and learn something; as always, drop us a comment if you think we left something out or are confused about a point.
- 00:00 Disclaimer
- 00:20 Intro
- 01:21 Update from the blockheads, what are we thinking these days
- 02:53 Protecting for buying power expansion is a MUST if you are going to sell options
- 04:34 It is time to feel uncomfortable
- 05:30 It was good to know the taste of victory before the sour of defeat
- 06:45 Even when you prepare.....you can still be caught unprepared
- 07:18 Viper has been experimenting
- 09:41 Crypto can be traded delta neutral?
- 11:12 A unique strategy ONLY possible in crypto
- 13:29 Play the setup tape leading to the trade moment
- 14:48 Time to make a move
- 16:20 Take a long AND a short! Only in crypto!
- 17:04 A Deeper look at how to Short
- 21:44 Equities CANNOT be long AND short at the same time
- 22:44 A new strategy emerges.....on accident
- 25:21 A profit plan, no matter the direction
- 26:35 This strategy is parallel to equity options
- 28:41 The crypto straddle does not cost more when volatility is high
- 31:11 Time does not seem to be as big of an enemy here in the crypto play
- 33:50 How it played out
- 36:25 Clear the board and get a better entry to go SHORT
- 37:52 vipers thoughts on this crypto straddle
- 40:00 Delta neutral teaser on GMX
- 41:53 sprocket really likes the sound of delta neutral in crypto
- 42:53 Things CAN and WILL still go wrong
- 46:12 Conclusion
- 47:32 Outro
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In this week's episode, sprocket888 and viperxl007 start a new series about retirement. Sure, this is a long way off for both of these Blockheads, but is it ever too soon to start saving? This episode examines the primary vehicles used to hold and grow wealth for retirement. We will take a look at some IRA's, 401k's, SEPs, and even HSA's. Neither of us are financial planners or have formal training, so we will share our thoughts and strategies with you on this topic. Our goal in this episode (and series) is to spark curiosity in the viewer to get them to start asking themselves critical questions on the subject and how it pertains to them.
As this is only our view on the tools we are using, you might have questions about things we don't plan to cover. We are always looking to expand our knowledge, so please leave a comment about what you want to know, and we will dig in and talk about it.
- 00:00 Disclaimer
- 00:22 Intro
- 01:22 Retirement, this is NOT trading, this is investing
- 04:16 Really....we are NOT experts...or professionals
- 05:24 Nobody is going to tell you when it is time to get ready. You can never be too prepared.
- 07:16 Retirement vehicles
- 09:45 Traditional vs Roth
- 11:56 What to think about when considering Roth v Traditional
- 14:33 What is my tax bracket going to be in retirement?
- 16:14 Why settle for one, it is always good to have options!
- 17:07 A common strategy for Roth accounts
- 17:57 Let's talk about a traditional IRA
- 20:22 Literally ANYONE can have an IRA
- 21:26 Choices in an IRA are virtually limitless
- 22:28 Let's take a look at a ROTH IRA
- 23:54 401k the general replacement of a pension
- 25:30 Let's talk about the characteristics of a 401k
- 28:01 Make sure you know what your specific employer offers
- 28:58 Make sure if you employer has a match you take 100% advantage of that.
- 30:28 401k options WILL vary widely from employer to employer
- 31:53 Let's take a look at the 401k ROTH
- 34:44 Do the employed have an advantage? Enter the SOLO 401k
- 38:00 Last let's look at a SEP retirement account
- 39:15 What does sprocket888 do, a look into HIS plan
- 41:44 sprocket888 does use and HSA, and absolutely considers an HSA as part of a retirement strategy
- 46:43 DON'T write off an HSA before you really look into it
- 49:02 You don't need an employer to provide you an HSA!
- 50:56 What does "all accounts under one roof look like?"
- 53:19 Moving money from one retirement account to another is actually not that scary
- 57:15 Conclusion: This is just the beginning, more coming on many aspects of retirement
- 58:48 Outro
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In this week's episode, sprocket888 and viperxl007 continue the series of gaming and cryptocurrency videos. This is the series's final episode and focuses on highlighting the dangers in this space. A lot of the other episodes might have made it seem like everything is sunshine and unicorns, but this is just not the case. We take a look at projects where losses are mounting. We also look back at the Roostr mint to offer a few thoughts. In the end, as we always say, there is no such thing as a safe play, but you need to be aware of the risks and know your own personal risk tolerance. Never play with money you can't afford to lose.
- 00:00 Disclaimer
- 00:21 Intro
- 01:19 A look back at this crypto gaming series
- 04:39 Street Brawler, just a cash grab
- 06:35 Police and Thief, inflation gone wild
- 13:19 Any regrets on Police and Thief?
- 14:50 So many parallels to real macro economics
- 17:55 Pizza Game, just so cool
- 19:34 Slime Shadies, just no utility
- 24:57 Inflation, can get out of control FAST
- 26:02 Hoppers, the whale exploit
- 28:01 Two critical flaws in the Hoppers tokenomics
- 29:07 A trend is visible on all the game intros
- 40:08 Chikn, is it different?
- 40:53 sprocket's take on why Chikn is different (economic modeling and simulations)
- 45:30 viperxl007's take on why Chikn is different (It is all about the luck)
- 51:09 Conclusion: Thinking through DEEPLY is very very important
- 60:42 Outro
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In this week's episode, sprocket888 and viperxl007 continue the series of gaming and cryptocurrency videos. In this episode, we participate in real-time an NFT mint on the Chikn.farm game was the point of discussion just a few short episodes ago. This live NFT mint is one of the first to do the mint with gamification. Before the mint, there were no details about what the game would be. It turns out the game looked a lot like an eBay auction of the mid-'90s. This episode was recorded over 3.5 hours, and we edited it down to the more interesting points. There are probably some rough transitions, but it should give a feeling of being right there with us for the mint (Without the total twiddling of thumbs portion).
- 00:00 Disclaimer
- 00:20 Intro
- 07:12 Rooster claiming for Chikn holders
- 09:09 Release of Medium article on what the game will be
- 15:31 Early price action on $EGG for the mint
- 24:46 Rooster claiming for $EGG holders
- 27:46 Compare this mint to traditional....so far
- 32:43 Pre game strategy from sprocket and viper
- 35:48 The eBay moment
- 43:12 The ACTUAL start of "the game"
- 46:40 sprocket goes in at 35 $EGG
- 50:10 The FINAL standings of "the game"
- 51:09 Conclusion: Hot take on how the mint went
- 52:44 Outro
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In this week's episode, sprocket888 and viperxl007 continue the series of videos on gaming and cryptocurrency. In this episode, we look at the details of the Ronin blockchain attack that has led to the most significant loss in crypto assets. After dissecting that incident, we focus on another up-and-coming game called 'Hoppers.' We take a deep look into the Hoppers ecosystem and note some of the more significant differences between last week's game chikn. Hoppers does have a unique twist on its tokenomics. Then we wrap up the episode by asking what is next. The two deep-dived games (chikn and Hoppers) come across as basic, so we take a look and guess where the ball is heading in the next several years.
In this area of gaming and crypto, there are so many unknowns and popup projects going nowhere. It is a space that is FILLED with risk and high potential losses. This is not a space to play in for more reliable, consistent results. However, the space is an excellent place to play in for that small portion of a portfolio intended for PURE speculation plays. We offer some thoughts on the things we screen a project for because we send our money to engage these projects.
- 00:00 Disclaimer
- 00:20 Intro
- 01:30 The Ronin blockchain attack, what actually went down and should I worry?
- 08:43 Beyond Chikn, A look at the game 'Hoppers'
- 09:52 Hop deeper into the Hoppers world
- 13:01 A tour of the Hoppers swamp
- 17:21 A slight twist on the tokenomics, looking deeper into Hoppers token system
- 18:40 How you make your voice heard in Hoppers, a voting system
- 21:29 Price action can be used to validate an ecosystem (Good or Bad)
- 23:09 Doing the daily chores down in the swamp
- 24:15 How exactly are you 'leveling up' in Hoppers?
- 28:47 Hoppers is not totally idle, you do have to visit at times
- 29:13 Don't worry, there is roadmap too
- 29:29 Tadpole, the next evolution...not a lot is known at this time
- 31:43 There are so many 'games' out there....how do you screen them?
- 37:43 Always check at least 3 keys: Twitter, Discord, Website
- 39:47 So far these games seem 'basic', what is the next evolution of this?
- 41:30 Glimpse of the future, Ascenders upcoming triple A title
- 47:26 Don't forget we are looking at all this through an TRADING lens
- 50:13 Conclusion: These 'basic' games will be here for a while, but there is so much more coming
- 51:58 Outro
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In this week's episode, sprocket888 and viperxl007 continue the series of gaming and cryptocurrency videos. This space is a VERY young and budding ecosystem. In part 2, they take a deep dive look at the chikn.farm game. This is essentially a gamified interface to a Defi system. sprocket lays out the land, and then viper gives a tour of his farm and goes through his 'daily chores. This game has a lot of entertainment and fun, and it has a nice added bonus of the ability to build wealth while having fun.
- 00:00 Disclaimer
- 00:20 Intro
- 01:30 The Game of Chikn
- 06:53 How viper became the first blockhead trader to become a farmer
- 10:34 Taking a trip to vipers farm
- 11:04 Like any working farm, there are always chores to be done!
- 18:18 A few subtle details about the farm
- 19:35 Supply and demand is a ALWAYS a thing.....even in a game
- 22:10 sprocket's farming strategy
- 25:37 Price action backs up the strategy
- 30:25 viper's plan for world chikn domination
- 32:49 One strategy retires while a new one is born
- 34:32 chikn is not just a farm, it is a COMMUNITY
- 37:38 Conclusion
- 40:33 Outro
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, sprocket888 and viperxl007 start a series of videos on gaming and cryptocurrency. This space is a VERY young and budding ecosystem. In part 1, they look at the concept and draw some parallels to other evolutions in gaming. It turns out things change, but many concepts remain the same. There is a lot of room for market expansion in this category. History never really repeats itself, but it does often rhyme. sprocket and viper set up the broad landscape so future episodes can drill down into the specifics of a game.
- 00:00 Disclaimer
- 00:21 Intro
- 01:09 Crypto currency and gaming
- 05:36 Gaming is ALWAYS evolving
- 09:13 The more things change the more they stay the same. Retro gaming aspects are alive and well
- 12:52 We talk about crypto gaming because it is virtually untapped when it comes to growth
- 14:38 Gaming has always been a conduit for many things
- 15:37 There is value and learning embedded in crypto gaming
- 16:41 What kind of "games" are out there?
- 18:13 Games that offer 'lesser' value have been HUGE success
- 19:57 Tri-tokenomics what is it all about?
- 21:12 The birth of crypto gaming is giving rise to the ability for many to profit, not just the few
- 24:39 Conclusion
- 25:50 Outro
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In this week's episode, sprocket888 and viperxl007 share a bit about what is on their minds these days. There has been quite a market pull down with all the uncertainty in the world. This has caused a lot of pressure on profits for sprocket and viper. So what are they up to? This episode looks explicitly at what they are doing in the equity world. They share honestly about the moves (or lack thereof) in the current trading environment. Showing that traders have to be in the game to be able to play another day, and not every day is full of exciting trades and profits.
- 00:00 Disclaimer
- 00:22 Intro
- 01:24 What are the Blockhead traders doing in this market?
- 02:07 What equities is viperxl007 trading
- 05:18 What equities is sprocket888 trading?
- 07:18 Should you store value in "stable" equities or cash?
- 09:14 CASH for sure, storing value in equities is BAD plan because you can really get squeezed.
- 10:54 An open look at sprocket888's current portfolio
- 15:33 The market seems trying to get higher, what is going on with the $SPY price action?
- 21:53 Quick tip: Flip the chart to remove bias
- 22:59 Don't lose sight of what you are charting, indexes don't behave the same as equities
- 24:41 Let's look at $SPY with the lens of an index
- 28:38 What was the drawdown on the last interest rate situation (2018)?
- 29:49 Conclusion: Trading is not always about raking in the gains, sometimes it is boring
- 32:04 Teaser for upcoming series
- 32:49 Outro
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The world events unfolding right now in Eastern Europe are heartbreaking. Many aspects of what is going on there are troubling in so many ways. It is refreshing to see technology that has empowered everyday people with the ability to provide aid to Ukraine. This technology is just as unprecedented as the events unfolding in that region today. In this week's episode, sprocket and viper look at the unshakable blockchain that can remain resilient and offer the ability for everyday people to send aid despite extreme disruption. While we are discussing Ukraine as a real-world example, the underlying theme in focus for this week's topic is the robust and capable design of the foundational technology behind the cryptocurrency.
- 00:00 Disclaimer
- 00:21 Intro
- 01:26 The blockchain has unmatched resiliency (sprocket)
- 04:23 The blockchain has unmatched resiliency (viper)
- 07:29 You can huff and you can puff but the blockchain won't fall down
- 08:46 An example of a very REAL benefit of crypto
- 10:22 Anyone can send aide to the Ukraine in under 5 seconds
- 15:35 Aid via crypto is WAY easier than any of the alternatives
- 17:45 As easy as this can be for good....So too for evil
- 18:41 With ease of use...legitimacy is not far behind
- 21:24 US Executive order on crypto
- 29:30 All new technologies require adoption (nothing is embraced without error)
- 34:40 Conclusion
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https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/
https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/fact-sheet-president-biden-to-sign-executive-order-on-ensuring-responsible-innovation-in-digital-assets/
Ukraine crypto address (On Ethereal): 0x165CD37b4C644C2921454429E7F9358d18A45e14
In this week's episode, sprocket and viper jump back to the equity markets to look at volatility. With all the unknowns in the market and all the world events, volatility is VERY high. This high volatility can strike fear and panic in market participants. However, if you understand what volatility means and how you can leverage it in your portfolio, you can learn that there is nothing to fear here. The arrival of volatility and fear can be an excellent signal for premium selling.
- 00:00 Disclaimer
- 00:22 Intro
- 02:07 Volatility is waaaaay up these days
- 04:04 Screening for volatile plays
- 09:00 $BP looks like a winner for volatility
- 13:58 viper takes a look at price action on $BP
- 20:12 $BP recap
- 23:01 Premium selling closing thoughts
- 24:03 Outro
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In this week's episode, sprocket and viper pose the question, Why Crypto? They openly discuss various pros and cons of the world of crypto. These are just their thoughts and opinions shared to help you ask similar questions to yourself. The goal of this episode is to share insight and understanding with the audience from viper and sprocket. The questions and discussion here are the very things that viper and sprocket thought about before deciding that crypto was something to add to their trading portfolio.
- 00:00 Disclaimer
- 00:24 Intro
- 01:13 Why Crypto?
- 01:50 viper's thoughts on why crypto?
- 03:28 Crypto is just another opportunity
- 04:04 Why did sprocket jump back in the crypto pool?
- 06:07 Should you consider crypto?
- 12:15 Are there reasons to AVOID crypto?
- 13:34 One of the coolest parts of cypto according to sprocket
- 13:59 Reasons to stay away according to viper
- 15:59 Crypto is an EXCELLENT teaching tool
- 17:20 There are ACUTAL projects out there focused on teaching
- 19:26 There are levels to crypto
- 20:02 sprocket owns an NFT? WHAT?!?
- 21:08 Ability to directly engage with founders and leaders is unprecedented
- 21:56 Due diligence and vetting projects is PARAMOUNT
- 23:18 All the same strategies from equities applies to crypto
- 25:52 Another reason to approach with caution, you can easily lose your way
- 29:32 One mans trash is another mans treasure
- 30:46 The collector mindset is very much present in crypto
- 33:12 Conclusion
- 36:27 Outro
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In this week's episode, sprocket needs to pick up his assets from a Rytell pool and move them. In last week's episode of taking the crypto plunge, sprocket staked some assets in a liquidity pool at Rytell. This pool has super boosted rewards for a limited time. Since that episode, the pool has ended this limited-time offer, and it is time to move the assets out as there is no more super boost. In this episode, sprocket gets his LP tokens back, turns them in, and gets his $EGG and $AVAX back. Then sprocket gets all this converted into $EGG and heads to chikn.farm to a single side stake in the $EGG pool. The goal is still to hoard $FEED; the Rytell pool was just a limited-time offer to take advantage of. The purpose of this episode is to share a real-life example of moving assets around in the crypto world.
- 00:00 Disclaimer
- 00:21 Intro
- 01:16 Limited time Rytell offer is over, time to move
- 03:45 Pulling out the LP tokens from the Rytell pool
- 05:16 Turning in the LP tokens and getting my $EGG and $AVAX back
- 06:55 Everything is unstaked and in the wallet
- 07:21 Time to move to the chicken.farm
- 07:46 Convert the left over $RADI to $AVAX
- 09:26 Convert some of the $AVAX to $FEED
- 10:57 Convert the rest of $AVAX to $EGG
- 12:25 Time to stake all the $EGG at chicken.farm
- 13:36 Closing Comments
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In this week's episode, sprocket takes the crypto plunge. sprocket is interested in chikn.farm but is not ready to pay the amount needed to buy some chikns. So the plan is to invest in some assets that will build over time to allow for the eventual purchase of chikn, but until then, we will collect some limited supply of $FEED. This $FEED is used on the chikn.farm but will be a fixed supply asset. In this episode, sprocket buys some $EGG and participates in an $AVAX/$EGG liquidity pool. The LP token from this pool is then farmed to gain $RADI. The $RADI can then be sold and used to buy $FEED. This is a pretty complex path of transactions, but we document each step on the journey.
- 00:00 Disclaimer
- 00:21 Intro
- 01:17 Time to ramp up the crypto machine
- 03:59 Chikn.farm overview
- 10:29 Tweak to the investment plan
- 09:14 viper explains the tweak
- 15:30 Step one: Buy the $AVAX
- 17:46 Next step: Send the $AVAX to the wallet
- 21:12 WE BROKE THE CARDINAL RULE
- 24:23 Next step: Get some $EGG
- 28:09 Next step: Deposit $EGG and $AVAX into the pool
- 32:35 Next step: We get the LP token from the pool deposit
- 34:17 Next step: Time to farm the LP token for some $RADI
- 36:18 Closing Comments
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In this week's episode, viper and sprocket make a hypothetical trade on PYPL. They talk through in plain English what each side of an options trade might look like. viper takes the side of the option buyer, and sprocket takes the side of the option seller. In this example, we highlight how there is not always one winner and one loser; instead, there are more often two winners. After this simple and descriptive example, we look at how /RTY is going for viper. Volatility was rising in /RTY futures product, and viper went in for a quick scalp and was rewarded handsomely for it.
- 00:00 Disclaimer
- 00:20 Intro
- 01:13 Opening with recent market action
- 02:42 A practical tangible walk through of an option trade
- 03:24 The PYPL bull side (option buyer)
- 09:14 The PYPL insurer (option seller)
- 11:41 The outcome matrix of the PYPL trade
- 16:37 The return on the investment
- 23:31 viper's recent trade on /RTY
- 24:43 viper is BACK IN /RTY
- 26:14 WINNER! viper cashed in 40% max profit in a few days
- 28:23 sprocket's /RTY still going
- 29:30 Closing Comments
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In this week's episode, viper and sprocket, look back at recent trades we made to update you on how they worked out for us. viper could declare a significant victory in one and pick up some good experience on the other without losing money. sprocket was not as lucky with $PTON and booked a loss; the $/RTY trade is still open but not looking good. One important example in this episode is the power of premium selling when volatility is high. viper got hit with a 3.7% drop in an index and still walked away without a scratch. This is thanks to the power of theta decay and volatility contraction.
- 00:00 Disclaimer
- 00:21 Intro
- 01:13 Taking a look back
- 03:43 Hedge regret
- 04:45 How did that $PTON trade go?
- 05:23 Review what the $PTON play was
- 09:57 From the ashes viper takes a crack at $PTON
- 15:29 How did viper's first trade in futures go?
- 19:00 $/RTY hit winner status FAST
- 23:40 $/RTY dropped 3.7% but NO money was lost!
- 23:55 sprocket did not get off the train with viper :(
- 26:26 Why do we sell premium so far OTM?
- 28:18 Closing Comments
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In this week's episode, viper and sprocket break crypto down into the three fundamental building blocks: currency (Coins and Tokens), ledgers (Blockchains), and objects (NFTs). When we talk about these items, we draw an analogy to things familiar to everyone, money, trains, buses, resorts, and wallets. This probably could have been a good pt one in this series, but this is more a recap of the most important aspects of what was already covered in pt 1 - pt 3.
- 00:00 Disclaimer
- 00:21 Intro
- 01:21 How can we make crypto simple?
- 04:21 Crypto world is not so different after all
- 09:12 Basics of navigating the crypto world
- 16:59 Let's talk about transportation fees (gas fees)
- 23:24 Pulling all the basics together
- 26:28 Closing Comments
- 30:11 ....One more thing....
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In this week's episode, viper and sprocket look back at 2021 and reveal how it went for their respective trading strategy and portfolio. viper discusses many lessons learned and how he has taken 2021 and grown as a trader. He then discusses how in 2022, he will be taking steps to dial in his strategy and make improvements. sprocket also takes a detailed look back on 2021 and shares the significant statistics and monthly breakdowns of returns. sprocket shares his lessons and the events that brought the most excitement. It is a long episode but excellent honest content from the minds of two blockhead traders. Look at the bookmarks in the video and jump to the sections that interest you the most. Indeed an excellent summary of the 2021 year.
- 00:00 Disclaimer
- 00:21 Intro
- 01:26 2021 a year in review
- 01:48 viperxl007 personal recap of 2021
- 12:26 sprocket888 personal recap of 2021
- 13:39 sprocket's high level yearly statistics
- 24:08 Monthly breakdown of sprocket's performance
- 26:16 sprocket's biggest takeaways from 2021
- 33:42 sprocket's 2021 fridge material
- 39:24 Closing Comments
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In this week's episode, sprocket888 introduces viperxl007 to futures. We talk about what a future is and what they are used for. Then we quickly narrow down the focus to just futures on indexes. Specifically options on these futures. sprocket888 shows the return on capital rates with options on futures indexes are over 4x the return on capital of the same index in the equities markets. This is particularly interesting because the RISK is the same in both markets. Futures can be scary because they appear different on the surface, but once you narrow down the scope to index futures, you will see no difference in the option plays' mechanics. Like most things, the more you understand, the less scary they become. https://www.cmegroup.com/markets.html
- 00:00 Disclaimer
- 00:21 Intro
- 01:15 Futures topic introduction
- 02:48 What exactly is a "Future"?
- 08:37 Where to start when it comes to trading options on Futures
- 14:07 Focus only on the index Futures
- 17:58 So why exactly should I even consider Futures?
- 22:55 Live comparison of S&P ETF to S&P Future
- 25:15 Analyze the trade on the S&P with option on Future $/MES
- 27:20 Analyze the trade on the S&P with option on ETF $SPY
- 28:59 Buying power DOES NOT equal risk!
- 31:30 Closing Comments
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This week's episode, sprocket888, talks through the details of a naked put play deployed on $PTON. While this example is on $PTON, the mechanics can be used everywhere. It is essential to understand the why and the how of the trades so that you can take the technique and apply this to any underlying that you like. Keep in mind the critical section of 'Alternate plans'; you need to have a plan for when things go your way and when things DON'T go your way.
- 00:00 Disclaimer
- 00:20 Intro
- 01:08 The $PTON episode overview
- 01:41 The $PTON trade setup and motivation
- 04:48 3yr price action on $PTON
- 06:09 Ideal outcome of $PTON trade
- 10:17 Alternate plans on $PTON (if needed)
- 15:38 Closing Comments
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In this week's episode, sprocket888 talks through the details of a covered call play deployed on $PGR. While this example is on $PGR, the mechanics can be used everywhere. It is essential to understand the why and the how of the trades so that you can take the technique and apply this to any underlying that you like.
- 00:00 Disclaimer
- 00:19 Intro
- 01:00 The motivation behind the $PGR trade
- 02:46 The $PGR opening trade details
- 07:23 Squeezing some extra juice from $PGR
- 12:25 5.6% return in under 30 days
- 15:24 Conclusion
- 17:20 Closing Comments
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In this week's episode, we continue our multi-part series to look at the world of crypto and attempt to demystify and explain it. In Part 3 of the series, we will look at what a CEX and a DEX are, how to move assets around practically, and what to expect. We will also dip into two passive income options of liquidity pooling and DAOs lastly as we move through this series, and the more exposure and information we have, sprocket and viper touch on their shifting approach in crypto, moving from a trading mindset to an investment mindset.
- 00:00 Disclaimer
- 00:21 Intro
- 04:27 Part 3: CEX, DEX, and crypto asset movement
- 04:41 The Centralized Exchange (CEX)
- 08:10 The DE-Centralized Exchange (DEX)
- 14:19 Moving assets around in the crypto world
- 28:56 Liquidity Pooling
- 29:43 DE-Centralized autonomous organization (DAO)
- 35:28 Where are the Options, Futures, and Margin Accounts?
- 37:08 Wrap-up of Part 3
- 37:29 The perspective shift of sprocket and viper on how to view crypto
- 46:59 Closing Comments
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In this week's episode, we take a break from our crypto topic and return to the world of equities. viperxl007 had set up a bunch of auto-plays about a month and a half ago. We take a look at each one of these. What was the play, and how did it work out? The tickers viper played were: $SPCE, $CCL, $MO, $SIRI, and $F. Then sprocket888 takes a look at the market action since Thanksgiving. The volatility in the market has ramped up, and there are several plays that we take a look at trying to play the volatility crush angle. There were several names sprocket liked: $AMD, $ETSY, $NTAP, $NXPI, $DE, $ZS, and $KR. The first play, $AMD, might help viper climb out of a hole he has found himself in from holding long $AMD.
- 00:00 Disclaimer
- 00:20 Intro
- 02:17 viperxl007 Intro to auto-play review
- 03:29 $SPCE auto-play entry
- 04:45 $SPCE auto-play result
- 05:51 $CCL auto-play entry
- 06:49 $CCL auto-play result
- 07:31 $MO auto-play entry
- 08:34 $MO auto-play result
- 09:31 $SIRI auto-play entry
- 10:41 $SIRI auto-play result
- 11:58 Possible option play on pennant pattern when volatility is low
- 13:43 $F auto-play entry
- 15:11 $F auto-play result
- 16:55 sprocket888 auto-play recap comments
- 18:30 Right now is a premium sellers market
- 21:50 Can premium selling help viper dig out of his hole?
- 22:55 Possible play to help bailout water from viper's AMD position
- 29:32 viper's thoughts on the bailout
- 31:46 Volatility rank play on $ETSY
- 34:21 Volatility rank play on $NTAP
- 36:18 Closing Comments
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In this week's episode, we continue our multi-part series to look at the world of crypto and attempt to demystify and explain it in this Part 2 of the series. This episode is on NFTs, DAPPs, DAOs, and Defi. However, we start with some viewer-requested content on the energy consumption that crypto is famous for. From there, we touch on non-fungible tokens (NFTs), distributed apps (DAPPs), decentralized autonomous organizations (DAOs), and lastly, decentralized finance (Defi). We dive a bit deeper into NFTs as viper recently purchased some. sprocket is also very interested in Defi as he sees a lot of potential in that aspect.
- 00:00 Disclaimer
- 00:20 Intro
- 03:43 What is Crypto: Part 2
- 04:34 Fear and greed index of crypto
- 07:14 The crypto sustainability problem
- 11:48 If crypto takes so much energy should we just give up?
- 15:45 There are low power crypto options
- 21:35 There are greener implementations of crypto
- 24:17 You must BE THE CHANGE you want to see!
- 29:15 DAPPS
- 36:55 DAOs, NFTs, and DeFi
- 42:40 A little deeper into the DeFi
- 47:41 viperxl007 took the plunge and owns some NFTs
- 57:33 sprocket888 really likes the potential he sees on DeFi
- 01:03:57 Closing Comments
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In this week's episode, sprocket888 is marking his second anniversary in his current trading journey. In 2019, it was tugging at him that there had to be a more efficient path to wealth creation, and so began his journey to creating his current trading strategy. In this episode, sprocket looks back at how it all started and the phases he went through to get to where he is today. Finally, we look forward to next year and his plans for his continued growth and education.
- 00:00 Disclaimer
- 00:20 Intro
- 01:39 Summary of a a look back at 2 years
- 07:45 2019 the year where it all began
- 17:55 2020 the year of building a system
- 29:02 2021 the year of proving the system works
- 38:35 What is in the plans beyond 2021
- 43:33 Closing Comments
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In this week's episode, we embark on a multi-part series to look at the world of crypto and attempt to demystify and explain it. In this Part 1 of the series, we start with the basics: the blockchain, the coins, and the tokens. sprocket888 and viperxl007 start introducing the series and then level setting with their personal history in the crypto world. Then we will take a look at the basics and attempt to explain many of the fundamental terms and concepts.
- 00:00 Disclaimer
- 00:20 Intro
- 01:45 What is crypto opening comments
- 03:21 Multi-part crypto series overview
- 05:07 What is sprocket888's first dealings with crypto?
- 11:35 What is viperxl007s first impressions of crypto?
- 13:41 What is a block-chain?
- 18:13 What is a SHA-256 hash?
- 20:28 How do miners and mining fit into the picture?
- 23:40 How is coin minting controlled?
- 25:15 Is there a transaction throughput concern?
- 26:04 What is a "Network Gas Fee" in crypto?
- 28:21 What exactly is a coin?
- 31:45 What exactly is a token?
- 34:40 Real world example of coins and tokens
- 42:25 Why should I care about all this?
- 45:42 Final thoughts on Part 1 of the multi-part series
- 51:35 Closing Comments
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In this week's episode, we take a peek into viperxl007's day trading thought process. viper covers day trading an IPO ($RIVN) and a well-established position ($SHIB). From there, sprocket888 expands just a bit on last week's video and shows you how to leverage order templates to make your day trading safer and more efficient.
- 00:00 Disclaimer
- 00:23 Intro
- 02:55 viperxl007's day trading intro
- 06:05 RIVN opening act (IPO) candle by candle analysis
- 18:40 viper's opinion on usage of indicators
- 24:34 SHIB an example of a non IPO day trade
- 25:46 viper's Prep before the trading day
- 27:23 SHIB trading for the day candle by candle analysis
- 37:42 viper's final thoughts on day trading
- 40:31 sprocket888 takes a look at order templates in ToS
- 46:16 OCO order templates
- 48:49 Trigger with 1 bracket template
- 51:35 ToS and auto-sending orders
- 53:24 Trigger with 2 brackets template
- 55:24 Setting a trailing stop for a runner
- 56:25 Cancel all orders in ToS
- 56:58 Flatten all positions in ToS
- 58:27 Reverse a position in ToS
- 59:29 Real world example of templates in /NG
- 01:02:20 Saving a template for reuse
- 01:04:26 Paper-trading to learn the controls
- 01:06:20 Closing Comments
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In this week's episode, sprocket888 takes you on a live recorded scalping session. In this session, we will touch on the indicators he uses for quick intraday scalps on any underlying. The underlying is $/NG (Natural Gas futures) in the session. But the same setup and indicators will work for whatever you like to trade. The indicators in this video are Heikin Ashi candles, Renko bricks, and Ichimoku Clouds.
- 00:00 Disclaimer
- 00:18 Intro
- 01:46 Indicators and Scalping Overview
- 05:27 Heikin Ashi
- 11:39 Renko Bricks
- 14:32 Ichimoku Clouds
- 16:47 Scalping Session
- 29:14 Picking the right box size
- 37:45 Closing Comments
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In this week's episode, sprocket888 is joined by viperxl007. They look at some of the calls on earnings that they made last week to check and see how suitable the calls were. They also add a new play on AAPL ahead of earnings. viperxl007 talks about the mechanics of how to make a play on a ticker, making a run at an all-time high. The example used in this episode is a crypto name $SOL, but the technique works regardless of the product. Finally, viperxl007 is set to take on a new challenge publicly. He is calling this "The 15% Challenge". The tickers in discussion this week are: $TWTR, $AAPL, $LC, and $SOL
- 00:00 Disclaimer
- 00:23 Intro
- 02:22 sprocket888 revisits last weeks calls
- 02:38 $TWTR Update
- 04:55 $AAPL New Play
- 06:48 $LC Update
- 10:42 viperxl007 look-back at calls
- 11:33 viperxl007's take on $TWTR
- 12:19 viperxl007's take on $AAPL
- 22:17 viperxl007's take on $LC
- 33:04 viperxl007 tips on making a play on all time high ($SOL)
- 41:18 viperxl007 taking on a 15% challenge
- 44:55 Closing Comments
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In this week's episode, sprocket888 looks at the upcoming week and some potential earnings plays that look ripe for the picking. Please note that earnings plays can be very dangerous and are very binary. There is often no reaction time to adjust or change your position. sprocket888 is looking for shorting volatility going into earnings; this means it is best to start with positions that have historically elevated levels of volatility. The tickers under consideration this week are: $SKX, $ATUS, $ZEN, $TWTR, $FB, and $LC
- 00:00 Disclaimer
- 00:22 Intro
- 01:26 Looking that the upcoming earnings week
- 02:21 What criteria is used to look for earnings plays
- 04:17 First potential play $SKX
- 08:14 Second potential play $ATUS
- 11:49 Third potential play $ZEN
- 14:46 Fourth potential play $TWTR
- 17:33 Fifth potential play $FB
- 21:16 Sixth potential play $LC
- 26:58 Closing Comments
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In this week's episode, sprocket888 and viperxl007, look at $SESN, which has picked up in volume and price this week. Several weeks ago, they made a play on $SESN. This could be the start of the move we were waiting for. After really diffing into $SESN, we retake a look this week on $SHIB. This was the crypto from last week's episode that was nailing price action to a T. We look at the most recent price action, and viperxl007 works to convince sprocket to open up some crypto positions.
- 00:00 Disclaimer
- 00:22 Intro
- 01:44 viperxl007 take on latest $SESN action
- 04:05 Review of the $SESN play
- 09:24 Next move to play $SESN
- 12:55 Selling $SESN calls on the way up
- 21:24 Revisiting the $SHIB
- 22:49 Crypto is textbook perfect price action
- 31:24 Closing Comments
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In this week's episode, sprocket888 and viperxl007 are joined by fellow Discord trader death8u. This episode is a deep dive into price action trading. We use two recent trades to discuss the trades and then dive into price action discussions on the charts. First up is viperxl007's trade on the meme on a meme coin $SHIB. After that, we look at a more traditional trade on $FB. In both tickers, we discuss price action and how to draw and utilize price action to assist in your trades.
- 00:00 Disclaimer
- 00:22 Intro
- 01:41 viperxl007 weekly recap
- 02:31 What the $SHIB?
- 08:07 The $SHIB play
- 14:03 Special guest death8u take on $SHIB
- 17:19 How to get trades from price action
- 24:04 Who trades $SHIB?
- 26:59 Why are there so many crypto exchanges?
- 29:09 Can $SHIB make it to $1?
- 32:36 $SHIB tried for the moon DURING the show!
- 33:52 sprocket888 takes a traditional play on Facebook $FB
- 39:03 Special guest death8u talks $FB
- 41:25 Possible short plays on $FB
- 43:47 Where do you start to mark price action levels?
- 49:49 When do you mark the price action levels?
- 53:50 Closing Comments
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In this week's episode, sprocket888 is treading water, and viperxl007 is dodging bullets. sprocket888 only sold some covered calls on positions he had ($C and $AAPL). viperxl007 has a clean slate and has played in a lot of tickers. viperxl007 played $SFIX, $AVIR, $MVIS, $BATUSD, and $LTCUSD
- 0:00 Disclaimer
- 0:23 Intro
- 1:24 sprocket888 weekly recap
- 4:46 viperxl007 weekly recap
- 6:39 $SFIX bullet dodged
- 12:56 $AVIR winner winner chicken dinner
- 18:28 $MVIS theta saved some profit
- 23:43 Some cyrpto experiments
- 24:41 $BATUSD bad entry
- 28:53 $LTCUSD price action perfection
- 32:36 $DVAX waiting for the play
- 34:44 $NG1! The NG Saga continues
- 43:03 Closing Comments
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The rain started to fall at the start of the week this week. This put a lot of pressure on the portfolio of viperxl007. This small rain storm allowed sprocket888 to observe some interesting points on his portfolio hedge from last week's episode. $AVIR, $FSLY, $MVIS, $RKLB, $/ES
- 0:00 Disclaimer
- 0:20 Intro
- 1:40 viperxl007 positions under pressure
- 3:30 $AVIR ray of sunshine
- 8:00 $FSLY down but not out
- 10:22 $MVIS level holding
- 13:34 $RKLB waiting for lift off
- 16:42 $SPX level revisit
- 20:08 $/ES hedge observations
- 24:25 $/ES reflection point 1
- 24:59 $/ES reflection point 2
- 28:30 Hedge play discussion
- 34:15 Closing Comments
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In this week's episode, we will look at a fundamental technique of placing a hedge. There are many ways to place a hedge. In this episode, we talk about a hedge, give some examples of hedges, and share our thoughts on hedges. In the end, we look at a natural hedge that sprocket888 recently put on in his portfolio.
- 0:00 Disclaimer
- 0:20 Intro
- 1:40 What is a hedge?
- 3:50 Hedge choices
- 11:20 sprocket888's opinion on hedges
- 15:23 sprocket888's hedge of choice
- 19:54 $SPY hedge example
- 23:45 $SPX hedge example
- 25:00 $/ES hedge example
- 26:50 viperxl007 thoughts on the examples
- 30:30 Where do you put the hedge strikes?
- 36:00 Price action analysis of the S&P 500
- 48:50 Where does the hedge fit into the price action analysis ?
- 55:00 Closing Comments
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In this week's episode, viperxl007 discusses some day trading moves on $RKLB, and sprocket888's trade on /NG runs out of gas and books a significant loss.
- 0:00 Disclaimer
- 0:20 Intro
- 1:37 viperxl007 takes a look at $RKLB
- 6:25 Intraday swing trades on $RKLB
- 13:50 Heikin Ashi view enhancement
- 19:00 $RKLB view from sprocket888
- 28:22 Intro to a $/NG loss
- 29:22 $/NG trade maneuvers
- 35:06 Viewing the charts on $/NG
- 38:35 $/NG view from viperxl007
- 46:52 Price levels vs Time premium
- 51:20 No regrets on management of trade
- 53:15 $/NG ROUND 2.......going back for more
- 56:38 Closing Comments
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In this week's episode, viperxl007 takes us into his screening process, and sprocket888 shares his frustration on three tickers ($LAZR, $PLUG, and $RIDE). viperxl007 is looking at a new screening method, and he is sharing a screening session. sprocket888 has been rolling three tickers now for nine months. They have not reached the bailout price and have not hit the profit target. It is an example of how sometimes trades just stall.
- 0:00 Disclaimer
- 0:20 Intro
- 1:40 viperxl007's screening method
- 7:12 a play on $COTY from the screening method
- 10:40 a potential play on $FSLY by viperxl007
- 13:45 A journey to No Man's Land Intro
- 15:30 STUCK in $LAZR
- 18:35 Current price action comments on $LAZR
- 24:20 STUCK in $RIDE
- 27:32 Current price action comments on $RIDE
- 33:02 STUCK in $PLUG
- 36:44 Current price action comments on $PLUG
- 40:20 Questions and comments on being STUCK
- 46:46 Closing Comments
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In this week's episode, viperxl007 and sprocket888 jumped into the $SESN play mentioned last week. Additionally, we will take a look at two other plays that are in flight. One on $MVIS and the other on futures options in the /RTY index.
- 0:00 Disclaimer
- 0:20 Intro
- 1:44 We opened a play on $SESN
- 3:47 $SESN trading plan
- 8:00 ViperXL007 $SESN thoughts
- 10:54 ViperXL007 talks $MVIS
- 14:16 $MVIS play
- 18:03 sprocket888 $MVIS thoughts
- 19:48 sprocket888s /RTY play
- 27:14 RTY P/L chart
- 28:55 ViperXL007 questions on the RTY play
- 33:44 Closing Comments
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In this week's episode, viperxl007 and sprocket888, look at some INTENSE action on $SESN that went down on Friday the 13th. ViperXL007 was in this trade when the bottom fell out. We get his take on the events. Sprocket888 was on the outside looking in and decided this might be an exciting entry point after the crash.
- 0:00 Disclaimer
- 0:20 Intro
- 1:16 Focus on $SESN
- 3:40 Viperxl Recap of $SESN Crash
- 18:06 Sprocket888s take
- 19:35 Overview of Call BUYING
- 26:45 Sprocket888s play on $SESN
- 29:30 Options vs Shares comparison
- 34:53 What if $SESN gets bought?
- 40:22 Other thoughts on entry timing
- 42:17 Viperxl007s take
- 44:24 IMPORTANT reminder on option pricing!
- 45:15 DON'T forget to watch your delta
- 49:10 Closing Comments
Join Blockhead Traders in our Discord: https://discord.gg/89Zywff
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In this week's episode, viperxl007 and sprocket888 look at some of the open positions they have on and talk about what they think about them. $ASTR $PLTK $LAC $FSR $C $BYND
- 0:00 Disclaimer
- 0:20 Intro
- 1:42 viperxl007 plays (screening)
- 4:46 $ASTR Play
- 7:19 $PLTK Play
- 8:15 $LAC
- 9:18 $FSR
- 10:50 Q&A on viperxl007 entry
- 12:47 sprocket888 plays
- 13:48 $C
- 17:51 Q&A on $C Options vs Shares
- 20:20 Q&A on $C Cost Basis
- 23:30 $BYND
- 29:48 Q&A on $BYND
- 32:36 Closing Comments
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In this week's episode, we look at how to "Roll." This is an option trade that will extend the length of the trade by moving it out in time. In this episode, we will use a recent roll with $CVAC to help explain.
- 0:00 Disclaimer
- 0:21 Intro
- 1:35 What is a "Roll"
- 3:30 $CVAC as an example
- 7:05 The example inside the platform
- 10:00 Your platform won't track P/L correct
- 15:48 Recap and closing
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In this week's episode, we look at an option strategy of selling a naked Put in hopes of reaching an assignment. This allows entry into an underlying at a discount due to the premium collected on the Put from the initial sale.
- 0:00 Disclaimer
- 0:20 Intro
- 1:12 How to go short to get long
- 1:35 The details
- 6:20 Real life example using $C ticker
- 12:37 Recap and closing
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In this week's episode, we look at the recent deposits from the IRS for the advance refund of the 2021 child tax credit. Be aware there could be adverse outcomes for you, the taxpayer. Then we look at a bit more of the sprocket888 and viperxl007 interviews from last week.
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In this week's episode, we have a casual conversation with some Blockheads on how they got started trading and heard their "elevator pitch" on what to consider when starting.
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In this week's episode, we look at a couple of trades we have in play right now.
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In this week's episode, we look at a trade that went all kinds of wrong and ended up with an $8,500 loss. Failure was in the books for this trade, but many of the trading rules were ignored, making the loss bigger. The episode is intended to serve as a warning to others about how quickly things can unravel. The trades we do are actual, and they are not always winners.
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This episode is part 4 in a 4-part series of "How to Start Trading." In this week's episode, we talk about some factors to consider when getting ready to open your trading account. We start with many features to look for to match your trading style. We then comment on a few of the brokers viperxl007 and sprocket888 have used (TD Ameritrade, Tastyworks, and Robinhood).
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This episode is part 3 in a 4 part series of "How to Start Trading." In this week's episode, we talk about the building blocks of a trading strategy. There is no way for us to cover all of them. We will give you the system's building blocks and describe our top two methods.
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This episode is part 2 in a 4 part series of "How to Start Trading." In this week's episode, we talk about the aspect of psychology and trading. There is much to be aware of because trading can play with your mind. We help you prepare for it.
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This episode is part 1 in a 4 part series of "How to Start Trading." This week's episode discusses the importance of financial readiness when it comes to getting ready to embark on a trading journey.
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In this week's episode we start to take a look at crypto markets. We talk a little bit about Ethereum, Bitcoin, and Dogecoin. This is a space that sprocket888 played in a long time ago but has not visited back in over a decade.
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In this week's episode we look at a day trading technique called "The Bear Trap".
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In this week's episode we look at the basic parameters for screening for premium selling option plays.
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In this week's episode we look back at last weeks earnings calls on EBAY, OSTK, NOVA, and AMZN. We then look at the Small Exchange from Tastyworks.
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In this week's episode we look back at last weeks earnings calls on NFLX and SNAP. We then look at the upcoming week at possible plays on EBAY, NOVA, and AMZN.
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This week's episode discussion is "Trading Earnings". In this week's episode we take a look at making an earnings trade. We discuss what an earnings trade is and what are some things to look at before entering one.
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In this week's episode we take a detailed look at trading and taxes. We discuss what exactly is a "Wash Sale". We also review some best practices to prepare for the tax bill when trading. This week's episode discussion is "Taxes, Wash Sale".
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In this week's episode we take a detailed look at a custom spreadsheet that Blockhead Traders utilize to make sure that the position size is correct. This week's episode discussion is "Position Sizing".
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Google Sheet discussed in this episode: https://docs.google.com/spreadsheets/d/17S0etDK5IwZiiIorWpFC4Oe1ZuOdROH9ZQWvxyp63Qg
In this week's episode we take a look back at the trading week of March 22nd and look forward to the week of March 29th. This week's episode discussion is "Premium Selling Basics".
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In this week's episode we take a look back at the trading week of March 15th and look forward to the week of March 22nd. This week's episode discussion is "Price Levels".
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In this week's episode we take a look back at the trading week of March 8th and look forward to the week of March 15th. This week's episode discussion is "The Poor Man's Covered Call".
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In this week’s episode we take a look back at the trading week of March 8th and look forward to the week of March 15th. This week’s episode discussion is “The Poor Man’s Covered Call”. Join Blockhead Traders in our Discord: https://discord.gg/89Zywff Follow sprocket888’s trades: https://www.thetagang.com/sprocket888
In this week's episode we take a look back at the trading week of March 1st and look forward to the week of March 8th. This week's episode discussion is "The Covered Call".
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In this week’s episode we take a look back at the trading week of March 1st and look forward to the week of March 8th. This week’s episode discussion is “The Covered Call”. Join Blockhead Traders in our Discord: https://discord.gg/89Zywff Follow sprocket888’s trades: https://www.thetagang.com/sprocket888