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Risk & Reward - May 13, 2025 - Risk and Reward: Selling Premium Against the Rally

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Manage episode 482612794 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
Market Volatility Drives Contrarian Trades on Risk of the Week Amid a bullish market rally sparked by positive China trade news, Gus and Errol analyze risky positions for the week. Markets have shown significant recovery since early April, with SPY approaching 600 and VIX contracting to around 18 despite trading at 62 in early April. For this week's trades, Gus takes a bearish position on Alibaba (BABA) ahead of Thursday's earnings with a 10-day bear put spread, noting potential downside from tariff uncertainty despite recent China trade optimism. Errol positioned short on NVIDIA (NVDA) with a June 20th call spread, collecting $1.72 credit against what they describe as "dotcom era extreme" valuations. Both traders express surprise at McDonald's menu price increases while discussing their contrarian positions against the ongoing market rally, which has been characterized as an elevator up rather than the usual "stairs up, elevator down" market pattern.
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1580 episodes

Artwork
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Manage episode 482612794 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
Market Volatility Drives Contrarian Trades on Risk of the Week Amid a bullish market rally sparked by positive China trade news, Gus and Errol analyze risky positions for the week. Markets have shown significant recovery since early April, with SPY approaching 600 and VIX contracting to around 18 despite trading at 62 in early April. For this week's trades, Gus takes a bearish position on Alibaba (BABA) ahead of Thursday's earnings with a 10-day bear put spread, noting potential downside from tariff uncertainty despite recent China trade optimism. Errol positioned short on NVIDIA (NVDA) with a June 20th call spread, collecting $1.72 credit against what they describe as "dotcom era extreme" valuations. Both traders express surprise at McDonald's menu price increases while discussing their contrarian positions against the ongoing market rally, which has been characterized as an elevator up rather than the usual "stairs up, elevator down" market pattern.
  continue reading

1580 episodes

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