The Trade Paper

Free Trade of the Week

OVTG has gone bearish on BA at a 160 PUT Calendar for APR 4 / APR 11.

Risk Management

If BA goes to 170, put a 172.5 or 175 CALL. Or, if it goes the other way and continues downward through 160, add a second PUT Spread @157.5 or 155.5

Last Week's trade otw

OVTG has sold their 162.5 CALL Calendar for 2.66 making the ROI about 22%.

This Week's Topic

Breaking Down the 2025 Trade Tariffs: What Traders Need to Know

Tariffs significantly influence global trade, affecting consumers and investors. President Trump's tariffs aimed to protect American industries by making imports costlier, promoting domestic purchases. This led to price hikes and market volatility, though some sectors are stabilizing due to company adjustments and positive economic indicators. Consumers face higher import prices and a shift to local products, while investors may find new opportunities in a stabilizing market. Long-term effects are uncertain, with some industries benefiting and others facing higher costs due to global supply chain changes. Staying informed on trade policies is crucial for informed consumer and investment decisions. Understanding tariffs' effects and adapting strategies helps traders navigate international markets competitively.

WATCH OUT FOR MISLEADING P&L REPORTS

In a prior article “Where to Trade Options”, I wrote about some of the snags that are involved with option order routing. We touched on the different methods a firm might use when it came to selling a short option position against a covered long option position and how detrimental a firm's procedure can affect the option strategist’s bottom line. The point of the article was to express how much most of these so-called household named brokerage firms do not tell us.

As mentioned in a prior article, the OPTION STRATEGIST has several choices when it comes to determining which way to participate in the OPTIONs MARKET. Many will enter into a pure SPECULATIVE STRATEGY based on an opinion or observation. Keep in mind that there are many different levels of speculation and the strategy that is applied will determine the probability of success along with the level of risk and any edge that might be obtained.

Isn’t it amazing how many choices are available in the world of OPTIONS? If you have ever gone into a restaurant with a zillion choices on its menu and had a hard time deciding what to order, you can probably see where I am going with this.

View More Articles Here