Trades
Fundamental Intelligence
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Getting smart about these AI stocks begins with an understanding of the basics
Be smart picking stocks in the artificial intelligence sector by considering the fundamentals of 12 popular AI companies.
That’ll require reviewing market capitalization, implied volatility and price/earnings (P/E) ratios.
Smaller companies—the ones with less than a few billion dollars in annual sales—carry the greatest risk. They lack brand or sector diversification, they have limited funding and they don’t have long lists of capabilities.
But small-capitalization AI stocks, such as SoundHound AI (SOUN), and BigBear.ai Holdings (BBAI), also offer the opportunity for the greatest appreciation of price.
It’s the old story of greater...
Cherry Picks
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Index Breakdowns and Implied Volatilities
|The S&P 500’s Expected Move From now until the end of the year the S&P 500 is projected to move somewhere around ±6%. This is the theoretical expected price range… -
Tom Sosnoff’s Current Outlook, Trade Ideas and Crypto Moves
|Tom Sosnoff’s Portfolio and Potential Trade Ideas We asked Tom his current outlook on various markets right now, here’s what he had to say: Short: Nasdaq-100, Chip stocks, Bonds Neutral:… -
Recent Earnings Moves and a Cheaper Gold Alternative
|Earning season so far Fifty-one percent of symbols were positive after the release of recent earnings. Below are the stocks with the biggest shocks this season. Looking for a lower… -
Asymmetric Leverage, Plus the Current IV & IVR Landscape
|Asymmetric Leverage If you lose 50% in a trade, you’ll need a 100% return on the next trade, just to breakeven. Here is the math: Required Gain to Breakeven =… -
Where the Action Is
|Understanding volatility helps traders manage risk. Here’s how sectors and indexes compare for their tendency to move in price. Volatility is synonymous with the probability of movement. Consistently volatile sectors,… -
Problems with BITO, the ProShares Bitcoin ETF
|BITO is not a suitable long-term investment The ProShares Bitcoin ETF (BITO) started trading today. According to the prospectus, it does not invest directly in bitcoin. Instead it uses the… -
Kickoff to Q4 Earnings Season
|Earnings: Daily Breakdown Earning Season “officially” begins with the big banks. Expect to see the bulk of earnings at the end of this month and beginning of next. One way… -
Recent Volatile ETFs and 2021’s Current Winning and Losing Stocks
|Most and Least Volatile Equity ETFs Below we sorted the sector and index ETFs from high to low for each week. Oil ETFs (not surprisingly) are consistently, week after week,… -
Metals, Yields, and Trades Ideas
|Metals Metals are moving. Perhaps this can be explained by metals becoming less attractive as Treasury Yields are increasing. Metals, after all, are non-interest bearing. This can be seen below… -
Sector ETF Slumps, Volatility Curve and Debt Instruments
|Monday Sector ETF Slumps With last Monday’s large sell off, the hardest hit sectors in the S&P 500 were Energy, Financials and Consumer Discretionary. Volatility Curve Below is a current… -
No Crypto? Consider These Proxies
|Cryptos have a weak relationship with the major equity indexes. Anything between -0.15 and 0.15 is considered to have no relationship. Digital currency’s correlation with the S&P 500 is 0.13,… -
Lookback: Introducing Options Backtesting by tastytrade
|Lookback is now live and open to everyone—you just need a tastytrade account. Perform Option Analysis, Backtest using historical data, expected trade simulation and projection using the Black-Scholes algo, plus… -
Two-Thirds In
|The S&P 500 rallied over 20% for the first 8 months of the year, the largest such rally for the first two thirds of the year since 1997. The historical… -
Stocks and ETFs to Trade Gold and Energy
|Gold Bug? Gold is down 8% over the past year; many gold stocks are down even more. For the Gold Miner ETFs, take a look at GDX and GDXJ. For… -
Recent Futures Ranges & Trade Ideas in Chinese Stocks
|Popular Futures Contracts: Intra-day, Median High-to-Low Ranges Per Month Check out Oil— huge moves in the month of August (see the Small Exchange’s /SMO contract for a 100 barrel alternative).… -
Earnings Impact and a Look at Defense Stocks
|Home Depot (HD) and Walmart (WMT) earnings were this morning. Lowe’s (LOW) and Target (TGT) is tomorrow. Download the full list here. Defense Stocks Three companies that are often synonymous… -
Futures-to-ETF Cheat Sheet
|Here’s a handy guide to convert your favorite futures to ETFs! The free weekly Cherry Picks newsletter from tastytrade is stuffed with market research studies, data-driven trade ideas, and unique… -
Volatility is Waning, Again
|The data below reflects Aug. 3 prices. Check out the VIX prices per month. At the bottom, we show the 5-, 10- and 30-year VIX averages. We are including this… -
Naked Puts for the Risk Averse
|In the Tactics section of this issue, an article entitled Three Ways to Play Long Odds offers three strategies for placing speculative trades. Here, readers will find an “anti-speculative” strategy… -
Diversification & Correlations
|Diversification is spreading money across multiple assets as opposed to just 1 or 2 (i.e. “don’t put all your eggs in one basket”). So how do you pick those assets?…