Government Shutdowns & Markets | Short ITM Puts Alternative to Covered Calls | Why Hedging Works
Broken Pie Chart
English - October 01, 2023 16:51 - 57 minutes - 52.5 MB - ★★★★★ - 16 ratingsInvesting Business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Derek Moore and Jay Pestrichelli, CEO of ZEGA Financial, look at how markets have done during past Government Shutdowns. The S&P 500 Index during, and 3 and 6 months later. Then they get in dept on why selling in-the-money puts is the same as selling covered calls on stock. What are cash covered puts? How US Treasuries yielding 5% plus may tip the scales. The risks and payoffs of one versus the other. How cash settled European style options differ from American style options at expiration (and before). Finally, they touch on why hedging works to take pressure off investors while reducing the need to time markets. Of course, some recommendations as well.
How have markets historically performed around government shutdowns
Should investors fear government shutdowns?
How long do government shutdowns typically last?
What was the longest government (or partial) shutdown?
Why hedging all the time helps investors stay invested.
The hedgers opportunity where potential exists to buy more shares lower.
What is an in-the-money (ITM) cash secured put?
What are the mechanics of a cash secured put?
What are cash settled European style option characteristics?
What are American style options with assignment and exercise components?
Risk of American style options vs cash settled options.
How selling ITM Cash Secured Puts is like buying the underlying and selling covered calls.
Why do investors get confused with cash secured puts or in-the-money put selling?
Payoffs and risks of ITM cash covered puts.
Why interest rates on short-term treasuries above 5% are a potential game changer.
Treasuries with ITM short puts vs long stock with covered calls
Mentioned in this Episode:
Cheap vs Expensive Options | Warren Buffett on Options | Fed Powell Presser
0DTE Options Analysis| Inflation Coming Back? | Strong US Dollar Impact https://podcasts.apple.com/us/podcast/0dte-options-analysis-inflation-coming-back-strong/id1432836154?i=1000628157831
Warren Buffett and Charlie Munger Berkshire Hathaway meeting discuss using and pricing options https://www.youtube.com/watch?v=SMkpou-YBGw
Implied Volatility Deep Dive | Real Interest Rate Yields | The Big Short | Tesla vs Nvidia
GameStop Short Squeeze by the Reddit Wall Street Bets Traders Explained
https://podcasts.apple.com/us/podcast/broken-pie-chart/id1432836154?i=1000507187446
The Big Short Movie and Credit Default Swaps Explained
https://open.spotify.com/episode/6FG0xHkxfhSXEtbJbFbDF6
Margin Call Movie and Understanding Value at Risk https://open.spotify.com/episode/2XJ58KAoQKw2sdC48KHyPp
Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt
Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek [email protected]