Crypto Too Volatile? Fight Fire With Fire

Going long on one cryptocurrency and short on another tends to cancel out the wild price fluctuations When it comes to crypto volatility, fight fire with fire.  Remember when bitcoin was under $5 back in 2011? Or when it was over $50,000 back in 2021? How about this year when it lost half that value?  That trip … Continued

Probabilities Favor Higher Tuition

Sure, there’s a possibility the price of college might come down, but the high growth rate and low volatility say the odds are against it If Ben Franklin were alive today, he might revise his maxim about death and taxes to include the rising cost of college. It’s uncertain which one people dread the most. … Continued

Short Puts in Small Stocks

Low-priced stocks and short put strategies are essential ingredients for active investors, but challenges arrive when mixing them A contrarian options trader might see a bullish opportunity when a stock gets pummeled to a low price. It’s a Pavlovian reaction, but there’s nothing wrong with that. There’s money to be made by taking on risk. When … Continued

Having a Meltdown Over Nuclear Energy?

Fortunately, there’s a formula for that. Let Poisson help you decide.  Humans function like pattern-recognition machines, and that’s generally a helpful trait. For example, they learn early on that cheeseburgers are delicious and don’t kill them, so they save time by zeroing in on cheeseburgers when they’re hungry. There’s a high probability that the cheeseburger … Continued

Pro Traders Know Probabilities Like Poker Pros Know Pot Odds

Many seasoned traders were not taken in by the meme stock hype It’s not opposable thumbs, extra cranial capacity or the ability to walk on two feet that separates humanity from animals. It’s hype. OK, maybe bees and ants let their friends know about the picnic. But humans have the unusual anti-competitive quality that spurs … Continued

The Tick is the Trade

… and Other Essential Trading Advice A pro trader dissects the three pillars to successful active investing Everyone who trades options wants to make money doing it. But how does someone reach that goal? A lot of strategies, techniques and products might work. Or not. Yet, three ideas can tilt the odds in favor of … Continued

Probability Reigns

Unless we know the chances they’ll come true, predictions mean almost nothing  The new year brings resolutions and predictions. Spend time with friends or family in late December or the first few days of January, and you’re likely to hear about their plans to get more exercise, lose weight or save money—all admirable choices.  But … Continued

Watch These 3 Inflation Indicators

I remember seeing the “WIN” buttons when I was a kid and having my parents explain inflation to me. The buttons, distributed at the behest of President Gerald Ford in 1974, stood for “whip inflation now.” Inflation was bad and whipping it was good. I also asked them what “burn the bra” meant, but they were … Continued

BIG TECH & THE LAW OF LARGE NUMBERS

HOW EXACTLY DID BIG TECH GET TO BE SO … BIG? To paraphrase ben franklin, those who would give up essential privacy to purchase temporary convenience deserve neither privacy nor convenience. Throughout history, humankind has used opposable thumbs and excess brain capacity to make daily existence easier. A line of convenience could be drawn from … Continued