Stop Buying Stock (Use This Instead), We Found a New 0DTE Strategy, Is The Housing Market in Trouble?
Stop Buying Stock (Use This Instead), We Found a New 0DTE Strategy, Is The Housing Market in Trouble?
By:Eric Villa
A weekly roundup of tastylive videos offers the best trading tips from the network’s wealth of financial shows
- Why the ZEBRA strategy belongs in your IRA.
- A new 0DTE strategy that is quickly becoming a fan favorite.
- Is the housing market a crisis or an opportunity? Tom Sosnoff and Dylan Ratigan debate the issue.
Stocks Are riskier than you think? Use this strategy.
The ZEBRA, also known as the "zero extrinsic back ratio" strategy, is a game-changer in the trading realm, offering a method of acquiring long stock positions with reduced risk and minimized capital requirements. Liz and Jenny’s video on how traders can use ZEBRAs in IRAs and regular margin accounts provides a complete crash course on the strategy. Takeaways include:
- Risk-reduced control: Enabling control over 100 shares of stock while mitigating risk and demanding less capital investment.
- Strategic IRA use: Particularly advantageous in individual retirement accounts (IRAs), allowing for nuanced strategies like creating short stock positions or securing long stock without the need for cash security.
- Unique ratio spread: Distinct from conventional ratio spreads, the ZEBRA employs a 2 by 1 ratio spread—long two in-the-money options and short one at-the-money option—providing traders with versatile positioning opportunities for both bullish and bearish perspectives.
Study finds a high win-rate strategy for 0DTE trades
While zero-days-to-expiration (0DTE) trades may feel too volatile to manage winners properly, our newest study found a way to maximize profits from winning 0DTE trades. It requires a nuanced approach to maintain high probabilities of profit. Insights from this strategy exploration include:
- Active management for profits: Active traders who consistently engage with winning 0DTE trades tend to yield more substantial profits compared to passive counterparts.
- Strategic handling of losses: Allowing losing trades to reach their maximum loss potential while remaining open to strategic adjustments when deemed necessary.
- Optimized risk definition: Daily closure and replacement of 30-day strangles have shown promising outcomes, outperforming the strategy of holding onto a long strangle throughout the month.
Hedge funds and the housing market: a reevaluation
The housing market is under scrutiny because of proposed legislation aimed at restraining hedge fund involvement in residential property ownership. Tom Sosnoff and Dylan Ratigan see some surprising opportunities for typical Americans with this trend. Crucial insights from this debate include:
- Market inefficiencies: The current real estate landscape grapples with inefficiencies, marked by high fees and insufficient liquidity, creating barriers for buying and selling.
- Potential for institutional intervention: Introduction of institutional capital into the housing market could potentially address these inefficiencies by fostering enhanced efficiency, reduced fees and increased liquidity.
- Critique of restrictive measures: Critics argue that banning hedge fund participation could limit market potential, advocating instead for long-term solutions focused on fostering a more efficient marketplace for property transactions.
Eric Villa is a YouTube specialist at tastylive.
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